After two grim quarters, things are getting better for Netflix. The streaming giant gained 2.41 million subscribers, in its third quarter, bringing the total number of subscribers to 223.09 million. The company exceeded its own expectations of 1 million subscribers in the third quarter and reported earning $7.93 billion in revenue.
Netflix experienced a decline in its revenue in the last 2 quarters, losing a total of 1.2 million global subscribers. A significant number of layoffs also occurred, including the recent downsizing of its animation department. However, with the addition of its new ad-supported tier coming to the platform in November, the company has potentially opened itself up to new customers looking for a cheaper way to stream.
“The reaction from advertisers so far has been extremely positive, and we believe that more choice, especially for more price-conscious consumers, will translate into meaningful incremental revenue and operating profit over time. That said, it’s still very early days, and since we’re keeping our existing plans ad-free, it will take us time to build up our membership base and the associated ad revenue,” the company noted.
This will be Netflix’s first increase in a while, particularly in its U.S. and Canada subscriber base. The company reported a spike in 104,000 subscribers in the region, making the new total 73.4 million. The last time Netflix experienced subscriber growth in the U.S. and Canada was in Q4 2021.
Looking ahead, Netflix appears optimistic. It projects an additional 4.5 million subscribers during the fourth quarter, with revenue hitting $7.8 billion.
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