Page 23 - ARUBA TODAY

A23
TECHNOLOGY Tuesday 18 July 2017

Netflix still piling up viewers - and big programming bills

By MICHAEL LIEDTKE lion) are outside the U.S. ther validates Netflix’s deci-
AP Technology Writer That milestone could fur- sion to expand into original
SAN FRANCISCO (AP) — ther complicate Netflix’s programming five years
Netflix is pulling in new view- cost issues, since the com- ago. Two of its longest run-
ers and award nominations pany will need to keep cre- ning shows — “House of
in droves, but the online ating more shows that ap- Cards” and “Orange Is
video service still faces a peal to the unique interests The New Black” — recently
long-term problem: Its ac- of viewers in countries such launched their latest sea-
claimed programming as Japan, India and Indo- sons.
line-up is costing far more nesia. Those two series, along
money than what subscrib- “It is going to be imperative with new hits like “Master
ers pay for it. for them to have more lo- of None” and “13 Reasons
That hasn’t been a big issue cally produced content,” Why,” helped Netflix easily
so far, thanks to investors’ says CFRA Research ana- surpass the average 1.8 mil-
willingness to accept scant lyst Tuna Amobi. “They lion subscribers it has add-
profits in exchange for ro- can’t afford to pursue a ed in the second quarter
bust subscriber growth. ‘one-size-fits-all’ strategy.” over the past five years. In this Friday, Jan. 17, 2014, file photo, a person displays Netflix
Netflix delivered on that As part of its efforts to boost This fall, new seasons of two on a tablet in North Andover, Mass. Netflix, Inc. reports financial
front again Monday, an- its profits, Netflix is becom- other hits, “Stranger Things” results, Monday, July 17, 2017.
nouncing that it added ing more aggressive about and “The Crown,” are due. Associated Press
5.2 million subscribers in dumping shows that aren’t Those two series accounted billion in cash last year, Net- by Wall Street standards. It
the second quarter cover- drawing enough viewers for about a third of the 91 flix expects that figure to earned $66 million on rev-
ing April to June. That’s the to justify their costs. In the Emmy nominations that 27 rise to as much as $2.5 bil- enue of $2.8 billion in reve-
largest increase ever dur- second quarter, Netflix jet- different Netflix programs lion this year. It’s continu- nue during its latest quarter.
ing the period, which has tisoned both the high-con- received last week — more ing to invest in more origi- Funding international op-
always been the compa- cept science fiction show than any other TV network nal programming amid in- erations remains Netflix’s
ny’s slowest time of year. “Sense 8” and the musical except its role model, HBO, creasing competition from biggest financial drag, al-
Wall Street rewarded Netf- drama “The Get Down.” which landed 111 nomina- the likes of Amazon, Hulu though the overseas losses
lix by driving up its stock by In a Monday letter to share- tions. and YouTube. are narrowing. The com-
more than 10 percent to holders, Netflix CEO Reed CASH BURN Netflix expects to be spend- pany now expects its in-
$178.30 in extended trad- Hastings made it clear that But the success hasn’t ing more money than it ternational operation to
ing, putting the shares on the company plans to ex- come cheaply. brings in for several more produce a small operating
track to hit a new high in ert more discipline in the Netflix is locked into con- years. It posted a more de- profit for the full year.
Tuesday’s regular trading. future. “They are becom- tracts requiring it to pay tailed explanation about its Netflix also could make
INTERNATIONAL COSTS ing more like any other more than $13 billion for negative cash flow to give more money by raising its
The Los Gatos, California, Hollywood studio and pay- programming during the investors a better grasp of prices closer to the $15 per
company now has 104 mil- ing more attention to the next three years, a burden its programming expenses. month that HBO charges
lion subscribers worldwide. economics of their shows,” that has forced the com- The company is still profit- for its streaming service, but
For the first time in its history, Amobi said. pany to borrow to pay its able under corporate ac- the company has said no
most of those subscribers PROGRAMMING COUPS bills. counting rules, although increases are planned in
(slightly more than 52 mil- The subscriber growth fur- After burning through $1.7 its earnings remain puny the near future. q

Tesla driver recants, says Autopilot not to blame for crash

By DEE-ANN DURBIN But in an email sent Mon- periods. If they ignore three
AP Auto Writer day afternoon to the sher- separate warnings to put
DETROIT (AP) — A Tesla iff’s office, Clark said he their hands on the wheel,
driver says his car’s partially was confused in the mo- the system will turn off.
self-driving Autopilot system ments after the crash. After Federal safety regulators in-
wasn’t responsible for a discussing the crash with vestigated Tesla’s Autopilot
crash in Minnesota, despite his fellow passengers, he last year after a fatal crash
what he initially told investi- now believes that he disen- in Florida. In that case, a
gators. gaged Autopilot by step- Tesla Model S hit a tractor-
In its police report obtained ping on the accelerator trailer.
by The Associated Press before the crash. The National Highway Traf-
on Monday, the Kandiyohi “I then remember looking fic Safety Administration
County Sheriff’s Office said up and seeing the sharp said in January it found no
David Clark, 58, blamed left turn which I was accel- safety defects in the sys-
Autopilot for a crash Sat- erating into. I believe we tem and declined to issue
urday evening in Hawick, started to make the turn This Friday, Sept. 30, 2016, file photo shows the logo of the Tesla a recall. The agency ex-
Minnesota. Clark initially but then felt the car give Model S on display at the Paris Auto Show in Paris. amined the Florida crash
told deputies that when way and lose its footing like Associated Press and others where Autopilot
he engaged the Autopilot we hit loose gravel,” Clark was engaged and found
feature, the car suddenly wrote in the email. erate with local authorities. the system, a message re- that, in many cases, driver
accelerated, left the road- Clark confirmed to the AP Autopilot automatically minds them to remain en- error was to blame. It also
way and overturned in a that he sent the email. maintains a set speed, slows gaged and be prepared said Tesla’s manuals and
marsh. Clark and his pas- Palo Alto, California-based down and brakes in traffic to take the wheel. Drivers instructions make clear that
sengers sustained minor in- Tesla said it’s investigating and keeps the car within a can take their hands off human drivers are respon-
juries. the incident and will coop- lane. When drivers turn on the wheel, but only for short sible for driving the car.q