Netflix smashed expectations for new customers, sending its stock rising 13% as it raised membership fees for several streaming plans in the US, the UK, and France.
According to LSEG, Netflix added nearly 9 million new members globally in the third quarter, beyond the 6 million predicted by Wall Street experts. According to Netflix, it anticipates the current quarter to see a comparable number of additions.
The impressive result demonstrated Netflix's success in spite of the Hollywood labour unrest that closed down a significant portion of American production. The majority of Netflix's new sign-ups came from countries where the streaming service produces a lot of its episodes and films.
Netflix cited the success of "One Piece," a live-action version of the storied Japanese manga series, as evidence of its significant investment in globally resonant tales. Long-running television programmes like HBO's World War II series "Band of Brothers" and the legal drama "Suits," which it licenced from Comcast, also drew in new viewers thanks to the streaming behemoth.
"These are the times I'm glad we have such a rich and deep and broad programming selection," Netflix co-CEO Ted Sarandos said after the release of the quarterly results. "The same was true during COVID, when we were able to manage the slate through a prolonged and pretty unpredictable production interruption."
This month, writers for films and television in Hollywood approved a new deal, but performers are still on strike. Netflix, according to Sarandos, is "totally committed to ending this strike."
The company's increase in customers during the third quarter was its biggest since the second quarter of 2020, when early-stage lockdowns during the global pandemic caused an unheard-of spike in streaming subscriptions.
Netflix raised the monthly cost of its premium ad-free plan by $3 to $22.99 in the United States. In Britain, the price of premium increased by 2 pounds to 17.99 pounds, while in France, it increased by 2 euros to 19.99 euros.
With the announcement well received by investors, Netflix shares surged from a close of $346.19 to $390.80 in extended trading.
The third-quarter gain at Netflix, according to PP Foresight analyst Paolo Pescatore, is evidence of the company's recent efforts to curb password sharing as well as the growth potential that comes with its foray into advertising.
"It is firing on all cylinders, with recent efforts all heading in the right direction," he said.
The pricing increases were revealed in a financial report that revealed, as of the end of September, the firm had 247 million global subscribers.
Europe, the Middle East, and Africa saw significant increases in Netflix subscribers—nearly 4 million more—than any other region. These days, more than 70% of its members live abroad.
After debuting on Netflix, "Suits" remained the most-watched title in the United States for 12 weeks in a row across film, original TV, and acquired TV streaming during the quarter. The show debuted on the USA cable network in 2011 and starred Meghan Markle, the wife of Prince Harry. It ran till 2019.
"As the competitive environment evolves, we may have increased opportunities to license more hit titles," Netflix said in its quarterly letter to shareholders.
Analyst projections for the company's $8.54 billion in revenue were met. Earnings above Wall Street's prediction of $3.49 per share, coming in at $3.73.
Netflix predicted revenue for the fourth quarter of $8.69 billion, which was somewhat less than the $8.77 billion analysts had predicted.
Netflix revised its content spending estimates to $13 billion in 2023 as a result of the writer and actor strikes, providing the studios settle with the striking actors "in the near future."
That was less than the $17 billion that was anticipated.
Netflix reported that its viewership remained dominant. Netflix reported, citing Nielsen data, that its content made up 8% of television screen time, second only to YouTube.
(Source:www.theprint.in)
According to LSEG, Netflix added nearly 9 million new members globally in the third quarter, beyond the 6 million predicted by Wall Street experts. According to Netflix, it anticipates the current quarter to see a comparable number of additions.
The impressive result demonstrated Netflix's success in spite of the Hollywood labour unrest that closed down a significant portion of American production. The majority of Netflix's new sign-ups came from countries where the streaming service produces a lot of its episodes and films.
Netflix cited the success of "One Piece," a live-action version of the storied Japanese manga series, as evidence of its significant investment in globally resonant tales. Long-running television programmes like HBO's World War II series "Band of Brothers" and the legal drama "Suits," which it licenced from Comcast, also drew in new viewers thanks to the streaming behemoth.
"These are the times I'm glad we have such a rich and deep and broad programming selection," Netflix co-CEO Ted Sarandos said after the release of the quarterly results. "The same was true during COVID, when we were able to manage the slate through a prolonged and pretty unpredictable production interruption."
This month, writers for films and television in Hollywood approved a new deal, but performers are still on strike. Netflix, according to Sarandos, is "totally committed to ending this strike."
The company's increase in customers during the third quarter was its biggest since the second quarter of 2020, when early-stage lockdowns during the global pandemic caused an unheard-of spike in streaming subscriptions.
Netflix raised the monthly cost of its premium ad-free plan by $3 to $22.99 in the United States. In Britain, the price of premium increased by 2 pounds to 17.99 pounds, while in France, it increased by 2 euros to 19.99 euros.
With the announcement well received by investors, Netflix shares surged from a close of $346.19 to $390.80 in extended trading.
The third-quarter gain at Netflix, according to PP Foresight analyst Paolo Pescatore, is evidence of the company's recent efforts to curb password sharing as well as the growth potential that comes with its foray into advertising.
"It is firing on all cylinders, with recent efforts all heading in the right direction," he said.
The pricing increases were revealed in a financial report that revealed, as of the end of September, the firm had 247 million global subscribers.
Europe, the Middle East, and Africa saw significant increases in Netflix subscribers—nearly 4 million more—than any other region. These days, more than 70% of its members live abroad.
After debuting on Netflix, "Suits" remained the most-watched title in the United States for 12 weeks in a row across film, original TV, and acquired TV streaming during the quarter. The show debuted on the USA cable network in 2011 and starred Meghan Markle, the wife of Prince Harry. It ran till 2019.
"As the competitive environment evolves, we may have increased opportunities to license more hit titles," Netflix said in its quarterly letter to shareholders.
Analyst projections for the company's $8.54 billion in revenue were met. Earnings above Wall Street's prediction of $3.49 per share, coming in at $3.73.
Netflix predicted revenue for the fourth quarter of $8.69 billion, which was somewhat less than the $8.77 billion analysts had predicted.
Netflix revised its content spending estimates to $13 billion in 2023 as a result of the writer and actor strikes, providing the studios settle with the striking actors "in the near future."
That was less than the $17 billion that was anticipated.
Netflix reported that its viewership remained dominant. Netflix reported, citing Nielsen data, that its content made up 8% of television screen time, second only to YouTube.
(Source:www.theprint.in)
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