Netflix has gained more than 2.4 million subscribers in the third quarter
Netflix has informed investors that it added more than 2.4 million customers in the third quarter, which is more than twice as many as the firm had projected. The total number of active, paying subscribers has increased to 223 million. As stated in the streaming service’s most recent shareholder letter, Monster: The Jeffrey Dahmer Story, Stranger Things Season 4, Extraordinary Attorney Woo, The Gray Man, and Purple Hearts were reportedly some of Netflix’s highest-grossing films and series of all time.
“Our Q3 content slate was especially strong. In English Scripted TV, we kicked off the quarter with Stranger Things S4, which generated 1.35 billion hours viewed—our biggest season of an English 4-language series ever. “This was followed in August by The Sandman (351 million hours viewed), which was loved by fans and critics alike,” said Netflix in the shareholder letter. The subsequent impact of the event included a 15.5% increase in the price of the company’s shares.
Netflix forecasts that there will be an even greater increase in revenue for the last quarter of the year. “For the fourth quarter of 2022, we anticipate revenues of $7.8 billion, with the sequential reduction being completely attributable to the sustained appreciation of the US dollar in comparison to other currencies. This translates to a year-over-year gain in revenue of 9% when measured in constant currency terms.
A recent announcement made by Netflix stated that the company will be adding advertisements to one of its membership tiers in order to decrease overall expenses and improve market share in certain locations. According to Greg Peters, Chief Operation Officer for Netflix, the new tier that includes advertisements will be priced at $6.99, which is around $3 less than the one that does not include advertisements.
“We also continue to invest heavily in marketing, with a particular focus on innovative ways to drive conversation around our titles, which in turn boosts engagement for Netflix. For example, our campaigns for Stranger Things S4 and The Gray Man drove more than 9.8 billion and 1.2 billion impressions, respectively, across paid marketing, social media platforms, and events. Original programming like Stranger Things will continue to boost the already robust intellectual property holdings of Netflix. Also, Netflix has said with certainty that the fifth season of Stranger Things is already being made.