What investors are looking for in Netflix’s Q2 earnings

Netflix reports Q2 earnings at market close tomorrow. Analysts don't expect looming competition from streaming competitors to threaten its Q2 growth targets of 0.3 million domestic subscriber adds and 4.7 million international subscriber adds this quarter.

What to watch: Investors will be looking at how price hikes that went into effect this past quarter impact subscriber growth. They will also want to know how those price hikes affected Netflix's free cash flow deficit, which is expected to be roughly the same as it was last year — roughly a negative $3.5 billion.

• Netflix recently revealed viewing statistics for the third season of "Stranger Things" as well as its new movie "Murder Mystery."
• Expect questions about the operating costs that are going into driving the success of these hits, including the evolution of Netflix's marketing strategy, which was on full display for the third season of "Stranger Things."

Driving the news: New data from research firm MoffettNathanson suggests that many of Netflix's most popular shows are actually its originals, like "House of Cards" or "Stranger Things," not rented catalog hits that the streaming giant is expected to lose, like "The Office" and "Friends."

Why it matters: Analysts have argued that Netflix's growth has been contingent on its ability to hook users with new content and then keep them from churning with old content. The new data suggests Netflix will survive without some of the hits it rented from its competitors over the years.

Worthy of your time: The Streaming Wars: Its Models, Surprises, and Remaining Opportunities by Matthew Ball