Form is temporary, class is permanent, as they say in sports, but perhaps it should be said in the entertainment industry as well.
After losing a combined 1,2 million subscribers in consecutive declining quarters in 2022, Netflix has seemingly rebounded with a third-quarter earnings report (opens in a new tab) that bodes well for its fortunes in 2023 and beyond. .
Between July and September this year, Netflix added 2,4 million subscribers to its paying customer pool, a figure that brings its global subscriber count to a new high of 223 million. The record-breaking form of Stranger Things season 4, coupled with the equally triumphant success of Monster: The Jeffrey Dahmer Story over the same three-month period, helped Netflix turn the corner.
Purple Hearts, The Gray Man and Extraordinary Attorney Woo were also crucial in helping the streamer recoup its losses, with Netflix saying revenue, operating profit and membership all beat its own forecasts in Q2022 1. For context, company executives expected to add XNUMX million new subscribers between July and September.
"After a rough first half, we think we're on the right track to re-accelerate growth," Netflix said in a statement accompanying the results. "The key is pleasing members. That's why we've always focused on winning." the daily viewing contest When our series and movies excite our members, they tell their friends, then more people watch, join and stay with us.
Netflix has suffered from increased spending from rival streamers such as Prime Video, Disney Plus and HBO Max in recent months, while the cost-of-living crisis in many regions has forced consumers to limit their monthly spending on entertainment content. .
But Netflix bosses know where they stand in an ever-expanding streaming industry. “Our competitors are investing heavily to drive subscribers and engagement, but building a large and successful streaming business is difficult,” Netflix said in its latest earnings report. "We estimate that everyone is losing money, with combined operating losses in 2022 well in excess of €10bn compared to Netflix's annual operating profit of €5-6bn."
This operating profit is also expected to increase in the coming year. Netflix is not only stepping up its crackdown on account sharing in a bid to boost revenue, but the streamer is also preparing to launch a cheaper, ad-supported subscription tier to ease subscribers' wallets and their own costs. results.
Netflix has confirmed that this cheaper Netflix plan, which will cost $6,99 / £4,99 / AU$6,99 per month, will launch in the US, UK and Australia on November 3rd, offering customers a cheaper way to watch Netflix at the expense of watching four. to five minutes of ads per hour.
Will it be a success? Only time will tell, but the surprisingly large adoption of a similar subscription tier on HBO Max is promising.
In any case, Netflix seems to have stabilized its ship, at least for now. Sure, mega-hits like Stranger Things and Monster: The Jeffrey Dahmer Story don't come out every month, but at least the company is back to the kind of financial stability that has allowed it to produce bold new movies and TV shows. on a regular basis. Here's hoping, anyway.
Today's best Netflix deals
(opens in a new tab) (opens in a new tab) (opens in a new tab)
(opens in a new tab)