Netflix has gained more than 2.4 million paid subscribers in the past three months, the company announced in its Third quarter 2022 results report. The increase in customers is more than enough to offset the consecutive drop in memberships the streaming service suffered earlier in the year. The number also Exceeds expectations.
In July, the company predicted that it would add one million new subscribers this quarter, banking on the release of popular series like the second half of stranger things‘ fourth season and the fifth season of Cobra Kai to attract new customers. And apparently the bet paid off. Netflix attributed this quarter’s growth to “big hits in TV and movies,” like Monster: The Jeffrey Dahmer Story and purple hearts. Most new subscribers are outside of the United States.
In addition to the increase in new subscribers, Netflix also reported revenue above expectations at around $7.9 billion, a 5.9% increase over the same period last year. However, the company’s earnings are down about 3% from September 30, 2021. “After a challenging first half, we believe we are on track to re-accelerate growth,” the company wrote. in its Tuesday letter to shareholders.
For months, the streaming giant has been struggling financially. Mid-April 2022, the company announced its first loss of subscribers in a decade, at a time when analysts expected a gain of more than two million. His the stock fell in response. Then the company adopted several big layoffs, cut hundreds employees, and began issuing warnings about a future crackdown on password sharing, as well as the possibility of ads On the platform.
The second quarter of 2022 also did not bode well for Netflix, as the number of subscribers continued to decline (although less than expected). Following the double user dump, the company began testing and suggesting different versions and features of the proposed changes to password sharing and advertising.
G/O Media may receive a commission
Last week, Netflix confirmed that a cheaper, ad-supported subscription plan would launch in November. The plan will cost $6.99 per month in the United States, exclude certain titles due to “licensing restrictions” and prevent users from downloading shows, according to the company’s announcement.
Just yesterday, the streaming service introduced a way to transfer viewer profiles between accounts to the American public, following pilots in Chile, Costa Rica and Peru. Although the initial announcement avoided mentioning password sharing altogether, the move comes in clear preparation for the impending and promised password crackdown, as confirmed in Tuesday’s letter to shareholders. Without the ability to transfer profile information to new paid accounts, many people’s preferences and algorithms could have remained orphaned and inaccessible.
“Finally, we’ve taken a thoughtful approach to monetizing account sharing and will begin rolling it out more widely beginning in early 2023,” the company wrote. “After listening to consumer feedback, we’re going to offer the option for borrowers to transfer their Netflix profile to their own account, and for sharers to more easily manage their devices and create sub-accounts (“additional member”), s want to pay for family or friends.
Although once essentially the only known name in streaming, Netflix has faced increasing competition in recent years. It seems like every media company has its own service and people choose their loyalty in a crowded field of options. The company was quick to blame its competitors (as well as the war in Ukraine, inflation and password sharing) for his recent struggles. However, mismanagement at heart of the business model might also have something to do with it. Yet whether or not there is a deep rot in Netflix’s business strategythe company will clearly survive to fight another quarterback.
#Netflix #turns #months #struggle