Netflix Adds More Subscribers Than Expected In Q4; shares rebound 7%

the streaming platform Netflix grew its subscribers in the fourth quarter of 2022 more than expected, thanks to the launch of its new plan with ads and the premiere of titles like “Merlina” and “Glass Onion: A Knives Out Mystery”.

In the fourth quarter, Netflix added 7.7 million new paid memberships, up from 4.5 million it expected.

With this, the total number of subscribers to the platform closed 2022 at 230.75 million, from the 221.84 million with which it ended a year earlier.

2022 was a difficult year, with a rocky start but a brighter end,” the company said in a letter to its shareholders.

After the results were released, as well as a change in the company’s executive management, Netflix shares rallied 7.06% in after-hours trading to $338.08 each.

Last year, the streaming platform’s shares lost more than 50% in the Nasdaq and they were among the hardest hit in the US stock market, pressured by greater competition in the sector, as well as by the departure of users.

In the first half of the year, Netflix lost almost 1.2 million subscribers, and was even surpassed in users by Disney+.

Given this, the platform launched a cheaper service in November of this year but with advertising in 12 countries (including Mexico).

In the letter to its shareholders, Netflix said it was satisfied with the first results of the new plan with ads, although it warned that “there is still a lot to do.”

“We believe that branded TV advertising is a substantial long-term incremental profit and revenue opportunity for Netflix,” the company said.

So far in 2023, Netflix has started on the right foot on the stock market, as it accumulates a rise in its share price of 14.65 percent.

The company said in its report that it has a “clear path” to accelerate its revenue growth, which includes continuing to improve all aspects of the platform, launching the payment scheme for account sharing and continuing to build the ad offering. .

In all of 2022, the company accumulated revenues of 31.615 million dollars, a growth of 6.45% compared to last year.

However, its net profit suffered a 12.2% drop in all of 2022, to 4,491 million dollars.