Netflix, an American subscription streaming service, has reported a 2.4 million increase in its global subscriptions in the third quarter (Q3) of 2022. The company expected to add extra 4.5 million subscribers by the fourth quarter (Q4).
The global streaming service, in a letter to its shareholders, said the company is on its way to reaccelerate growth after a challenging first half.
Netflix shares increased as high as 14.32% to $275.35 after the result was made public. The immediate jump in prices showed Netflix investors, who have been clamouring for growth since the beginning of the year, gladly increased their holdings in the company’s stock.
However, Netflix hasn’t been growing as it did in the past couple of years. For instance, the company lost over one million subscribers in the first half of this year alone. Meaning, even with the reported growth, Netflix is just paring losses and managing to stay afloat.
The company’s revenue for the third quarter grew by 5.9% to $7.93 billion, surpassing analysts’ expectations.
According to the company’s financial statement, Netflix subscribers jumped on the back of Stranger Things, the new episodes currently airing on the platform. Other top series luring people to the platform were the Korean Drama smash hit Extraordinary Attorney Woo, The Gray Man, and Purple Hearts, and it’s second most famous English series, Monster: The Jeffrey Dahmer Story, a true crime drama.
It should be recalled that a few days ago Investors King reported that Netflix in an effort to increase revenue and diversify earnings, introduced the Basic With Ads package in Uk, the U.S, and other ten countries.
While the new ads-based subscription is expected to commence next month, Netflix has launched a new feature to ease migration to the new package without having to create a new account.
The new feature called Profile Transfer would allow existing Netflix subscribers to join the basic with ads package by just clicking to switch and vice versa.