2.4 million subscribers added – The Hollywood Reporter

Netflix added 2.4 million subscribers during the third quarter, marking a major turnaround for the streaming giant which has been plagued by declining growth over the past year.

The streamer now has just over 223 million subscribers and plans to add another 4.5 million subscribers in the fourth quarter. In the United States and Canada, Netflix recorded a modest gain of 100,000 subscribers, while the Asia-Pacific region contributed 1.4 million paid subscribers. Latin America attracted 310,000 subscribers while the EMEA region generated 570,000 of Netflix’s quarterly subscriber additions.

Total revenue during the third quarter was $7.92 billion, down slightly from the second quarter but representing a 5.9% year-over-year increase.

Tuesday’s earnings mark the first time this year that Netflix has added subscribers. Netflix lost 970,000 subscribers in the second quarter and 200,000 subscribers in the first quarter – losses that sent the company’s stock price plummeting and dealt a huge blow to staff morale at the light of layoffs and slowing growth in corporate spending.

Subscriber losses also forced the company to turn to advertising for the first time. Although Netflix previously announced that it would launch its ad-supported tier in early 2023, the streamer has accelerated that schedule and is set to launch an ad-supported subscription tier on November 3 for $6.99 per month – about a month before Disney+ launches its own ad-supported tier for $7.99 a month on December 8.

To that end, Netflix signed a deal with Microsoft to power its ad technology, hired Snap Chief Commercial Officer Jeremi Gorman and VP of Sales Peter Naylor to lead the initiative, and signed a deal with Nielsen in the United States. States and the nonprofit BARB in the United States. UK to measure the audience of its advertising partners.

Other monetization efforts include the streamer’s growing crackdown on account sharing, whose latest update included a new feature rolling out Oct. 17 that will allow users to transfer their profiles to a new member account. In a shareholder letter linked to Netflix’s earnings report, the company said it had “discovered a thoughtful approach to monetizing account sharing” that allows both profile transfers and primary account holders to ‘add “sub-accounts”, if they wish. pay for family and friends. Starting early next year, these changes will be rolled out more widely, the letter says.

And, as Netflix focuses on revenue, the company said it will stop providing guidance to paying subscribers starting next January, when Netflix releases its fourth quarter results. The company will still share its guidance for revenue, operating income, operating margin, net income, EPS and fully diluted shares outstanding.

As for Netflix’s games expansion, Netflix now has 35 games available, including titles based on The bet of the queen, successful! and Money theftas well as a Netflix edition of Without beef. Netflix said it has 55 more games in development and has previously said it expects to have over 50 games available to play by the end of the year.

As Netflix kicks off Hollywood’s third-quarter earnings season, Wall Street’s attention will focus on whether streaming platforms can continue to win subscribers amid an economic downturn and executives are signaling that content spending will be more disciplined. Since day one of trading this year, Netflix stock has fallen about 60%.