- Despite Hollywood strikes, measures against shared passwords, and rising prices, Netflix continues to bring profit to its investors.
- The number of subscribers of the platform increased by 9 million in the 3rd quarter, exceeding expectations. Thus, the number of subscribers worldwide reached 247 million.
- After this decision of Netflix, which increased the subscription fee in many countries, the company’s shares also increased and rose from $ 346.19 to $ 390.80 in long-term transactions.
- He also noted that Netflix programs account for 8% of the time spent on television screens, ranking second after YouTube.
Netflix raised subscription prices for some of its streaming plans in the US, UK and France on Wednesday, defying expectations and sending its shares up 13%. Almost 9 million subscribers worldwide joined Netflix in the third quarter of July, August and September, exceeding Wall Street analysts’ forecast of 6 million. Netflix said it expects a similar number of additions in the current 4th quarter.
What is surprising is that this performance occurred despite the Hollywood strikes that shut down a large part of the US movie industry. Netflix produces most of its shows and movies abroad, which accounts for the bulk of new registrations.
Productions that bring the most subscribers
Netflix noted the global success of “One Piece,” the live-action adaptation of the revered Japanese manga series, which exemplifies its heavy investment in stories that travel and resonate around the world. The streaming giant has also drawn new viewers to long-running television shows like the legal drama “Suits,” which it licensed from Comcast, and HBO’s World War II series “Band of Brothers.”
Netflix co-CEO Ted Sarandos said after the quarterly results were announced: “I’m delighted that we have such a rich, deep and broad selection of programming at this time. “The same was true during COVID, where we were able to manage the situation through a prolonged and highly unpredictable production outage.”
The strike continues
Hollywood’s film and television writers approved a new contract this month, but actors continue to strike. Sarandos said Netflix was “fully committed to ending this strike.”
The company’s customer gains in the third quarter are the strongest quarterly increase since the second quarter of 2020, when lockdowns early in the global pandemic led to an unprecedented surge in viewing and streaming subscriptions.
Despite the new increases
Netflix increased the US price of its premium ad-free plan by $3 per month to $22.99. The price of the same package increased by 2 pounds to 17.99 pounds in the UK and by 2 euros to 19.99 euros in France. Investors welcomed this move of Netflix, which has not been stable in the stock market for a while, and Netflix shares rose from $ 346.19 to $ 390.80 in long-term transactions.
Noted stock market analyst Paolo Pescatore said Netflix’s growth in the third quarter is a testament to recent crackdowns on password sharing and growth opportunities as it moves into the advertising space.
Global earnings
The price increases were announced in an earnings report that showed the company’s global subscriber base reached 247 million at the end of September. Significant subscriber gains were achieved in Europe, the Middle East and Africa, where Netflix added approximately 4 million subscribers. More than 70 percent of Netflix’s members now reside outside the United States.
During the quarter, “Suits” was the most-watched title across movies, original TV and acquired TV channels in the U.S. for 12 consecutive weeks after its release on Netflix. The series, starring Prince Harry’s wife Meghan Markle, was first broadcast on the US cable network from 2011 to 2019.
8% of time spent on TV belongs to Netflix
“As the competitive environment evolves, our opportunities to license more hit games may increase,” Netflix said in its quarterly letter to shareholders. said.
The company generated $8.54 billion in revenue, in line with analyst estimates. Earnings per share came in at $3.73, above Wall Street expectations of $3.49. Netflix’s fourth-quarter revenue estimate of $8.69 billion was slightly below analysts’ estimate of $8.77 billion.
The writers and actors strike led Netflix to revise its content spending forecasts to $13 billion in 2023, assuming studios would reach a deal with striking actors “in the near future.” This is below the $17 billion the company expected to spend.
Netflix also said that it continues to dominate the audience. The company also stated that, based on Nielsen data, Netflix programs account for 8% of the time spent on television screens, ranking second after YouTube.
Compiled by: Okan Köroğlu
