Netflix reverses subscriber decline and projects profit with its new ad-supported package

Netflix Inc reversed the loss of customers and offered a slightly more bullish outlook than expected Wall Streetprojecting that a new ad-supported streaming option would help attract 4.5 million subscribers by the end of the year.

From July to September, Netflix attracted 2.4 million new subscribers worldwide, more than double the 1.07 million expected by the median of analysts surveyed by Refinitiv.

During the quarter, Netflix premiered the latest episodes of Stranger Things and the series of serial killers Dahmer – Monster: The Story of Jeffrey Dahmerwhich became one of the most watched series of all time on the platform.

The streaming giant is working to revive customer growth after a sudden decline in the first half of the year, when the subscriber base shrank by 1.2 million. Netflix now has a total of 223.1 million subscribers worldwide.

In his quarterly letter to shareholders, Netflix noted that “our competitors are investing heavily to get subscribers and engagement, but building a large and successful streaming business is hard.”

Netflix estimated that its competitors would end 2022 with combined operating losses of “well over $10 billion,” compared to the annual operating profit of Netflix between 5,000 and 6,000 million dollars.

In the third quarter of 2022, Netflix exceeded forecasts Wall Street with revenues of 7.9 billion dollars, 6% more than the previous year. Earnings were $3.10 per share.

The company’s forecast of 4.5 million customer acquisitions by the end of 2022 slightly exceeded the estimates of Wall Street, which had been 4.2 million on average. For the fourth quarter, Netflix projects revenue of $7.8 billion, a sequential decline that it blames on the strong value of the US dollar.

At the beginning of November, Netflix will launch a $7-a-month ad-supported streaming plan to lure cost-conscious customers, a move executives have long resisted.

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