![]() ![]() This is good news for shareholders, which is why Netflix shares are currently up 13.75% in pre-market trading ($393.79 per share). Nearly a third of new subscribers start with an ads plan. Ads are increasingly contributing to the bottom line as the number of subscribers on the ads plan is up almost 70% quarter-over-quarter. When it comes to revenue, Netflix reported $8.5 billion this quarter, with earnings of $3.73 per share. Netflix hasn’t seen that kind of growth in subscribers since Q2 of 2020, also known as the quarter of strict COVID lockdowns around the world. And that number jumped by 8.76 million subscribers this quarter alone. The company now has 247.15 million subscribers. While reports suggest that many customers are facing subscription fatigue and are thinking about canceling some streaming subscriptions, it seems like Netflix still has a lot of room for growth - especially with advertising revenue. People now have to pay quite a bit of money to remove ads from Netflix. The company also streamlined its offering a couple of months ago by removing the basic tier in the U.S. In other words, we’re now seeing a clear picture of the effect of password sharing as the third quarter is the first full quarter under the new rules. In May, Netflix began its crackdown on password sharing in its home market and in dozens of global markets. For instance, the most expensive plan will now cost $22.99 per month for new subscribers.īut let’s rewind first and look at Netflix’s current situation. and France to differentiate ad-free plans from its entry-level ad supported plan. The company added nearly 9 million subscribers globally, which means that revenue is up.Īnd yet, it also means that Netflix is using this opportunity to raise the prices of some of its plans in the U.S., the U.K. “We’ve shown that with discipline and a focus on the long term, you can build a strong, sustainable streaming business,” the company said in a letter to shareholders.Netflix reported its third-quarter earnings and things are going great right now for the streaming giant. ![]() On Wednesday, the company also announced a deal to release animated films produced by David Ellison’s Skydance Media. Suits, a series that first aired on USA Network, was the most-watched program on streaming all summer thanks to viewing on Netflix. Netflix’s biggest hit in the quarter wasn’t an original though. The company released new seasons of the hit shows Virgin River and Heartstopper and created new hits such as the manga adaptation One Piece. This includes about $1 billion less in spending on content due to the strikes.īut the labor stoppage has had little impact on Netflix’s release schedule because many programs were already completed. Management expects $6.5 billion in free cash flow this year, up from a prior forecast of at least $5 billion. The company also said profit margins would improve to at least 22 percent next year and have the potential to grow further in the years ahead.Ĭash flow was boosted by the labor stoppage in Hollywood. Earnings rose to $3.73 a share, beating estimates of $3.56, while revenue grew 7.8 percent to $8.54 billion, slightly ahead of forecasts. On the other hand, Netflix reported third-quarter revenue and profit that exceeded Wall Street expectations. But most of the newer streaming services lose money. They have spent billions of dollars to fund new streaming services that can replace their declining linear TV networks. ![]() and Paramount Global have all cut costs and fired staff to improve their financial performance. Walt Disney Co., Warner Bros Discovery Inc. Netflix has returned to growth as many of its peers struggled to figure out their streaming operations. About 30 percent of new customers in those markets opted for ads last quarter, the company said. The company also rolled out an advertising-supported version of its streaming services in 12 markets. “We’re incredibly pleased with how it’s been going,” co-Chief Executive Officer Greg Peters said in a videotaped interview released after results came out.Ĭracking down on password sharing is one of a couple major initiatives at Netflix, which is trying to revive growth after a sluggish year or two. The benefits of the password crackdown will continue over the next several quarters because Netflix has been implementing the plan in stages. The company said subscriber additions would be similar to the just-ended quarter, plus or minus a few million. This quarter, Netflix predicts revenue of $8.69 billion and earnings of $2.15 a share, both slightly below Wall Street projections.
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