its first report since the s subscription tier in april let's talk more about all of these are alex kantrowitz. he is a cnbc contributor alex, we have talked about the netflix story over the course of last year because of the bottom it saw and the off to the races rally we have seen is all of the good news already priced in? >> this is a crucial quarter for netflix. i have seen expectations from 5.5 million ads to 7 million ads. if it beats on the high end, you could see thestock have room t continue going up. if it misses, the pressure is high this is a company that actually contracted subscribers last year it is a tenuous moment for the company. this is a very, very important quarter. >> the subs are the key. alex, you and i know over the last several years, it is not necessarily the earnings per share beat or miss or revenue beat or miss it is the subscribers and what wall street expects. what does wall street have to do >> i think the ad supported tier is important you can't forget that. obviously it launched in the replie middle of the quarter. the key is content we see competition from d

we have alex kantrowitz on the line how big a fight could this be?it would be a significant fight. good morning i say this because disney is trying to fight this iger is coming in and he wants a smooth start to the tenure when he is picking the fight, it indicates that disney is expecting a shakeup here >> p do we know a lot about what peltz wants? i'm sure viewers know who he is. he is associated with restaurants and arby's and he comes in and tries to fix what's broken this is different. do we know what he thinks is broken at disney >> according to reports, first thing he is looking for is a succession plan for bob iger you know, at a certain point, that comes with the cost you see the costs here you can't do that forever. we are operating in different conditions you are not able to operate in the money losing practices like the past think of the streaming service and what it lost in the past those are two areas to focus on if you ask my opinion. i think he will zero in on those. >> we are asking your opinion, alex we appreciate the answer disney,