Netflix is back on track with 2.4 million subscriber gain
The wheel of fortune is finally turning its way for Netflix. The streaming giant is back to growing, and everyone can breathe freely now. In the third quarter, the company added 2.41 million customers. The good news doesn't end there. It is expected to grow even further this quarter. Things are finally looking up for Netflix after two horrible quarters.
Why does this story matter?
When it was reported that Netflix's perennial subscriber growth came to an end, it created havoc around the world and especially in Hollywood. The streaming giant has long been the face of new media. Its downfall didn't spell good things for those dependent on it. The Q3 results of the company put a pin on this, at least for the time being.
The company reported a revenue of $7.93 billion
In Q3, Netflix gained 2.41 million customers worldwide. In the current quarter, it is expected to add another 4.51 million subscribers. The Asia-Pacific region was the main driver of growth for the company. The region contributed 1.4 million subscribers in the quarter. The company reported a revenue of $7.93 billion, topping predictions. The earnings per share (EPS) in the quarter was $3.10.
Several hit TV shows and films behind increase in subscribers
Netflix's growth in the quarter was driven by hit TV shows and films, including 'Monster: The Jeffrey Dahmer Story,' 'Stranger Things S4,' 'Extraordinary Attorney Woo,' 'The Gray Man,' and 'Purple Hearts.' The company, however, said that it's not growing as fast as it'd like. It is still on track for the slowest growth in several years. The streaming giant's projections echo this sentiment.
Projected revenue, EPS for Q4 is less than analyst estimates
Netflix has projected an increase in subscriber acquisition, but its revenue and EPS projections are below estimates. The streaming giant projects revenue of $7.78 billion in Q3 against the $7.93 billion forecast by analysts. The projected EPS for Q4 is 36 cents/share compared to the $1.20 Wall Street estimate. "We know we still have a lot more work to do," said Netflix.
Netflix has taken new measures to address its issues
Netflix's 2022 until Q3 has been a streak of losses. The streaming giant has taken steps to address this. The new ad-supported tier which is cheaper than previous plans is expected to play an important role in the company's future growth. The company has also been testing charging 'account sharing fee' from users in Latin America. This will be implement broadly in 2023.
