Netflix said on Thursday it added more than 8 million subscribers in the second quarter, benefiting from a crackdown on password-sharing and titles like “Bridgerton,” “Baby Reindeer” and “Roast of Tom Brady.”
The subscriber gains beat analysts’ expectations that Netflix would gain about 5 million new customers between April and June.
The new subscribers bring Netflix’s global subscriber base to more than 277 million.
LSEG said the company reported diluted earnings per share of $4.88, beating the consensus estimate of $4.74 per share.
Quarterly revenue came in at $9.56 billion, in line with expectations.
Wall Street investors have been closely watching the growth of Netflix’s ad-supported tier, which has been fueled by a crackdown on password sharing, price increases for its ad-free plans, and new consumer bundles such as Comcast’s “StreamSaver” bundle that combines Netflix, Peacock and Apple TV+.
Netflix said its ad-tier membership grew 34% from the previous quarter, but did not disclose how many subscribers had opted into the option.
“Our advertising business is growing well and is a growing contributor to our business,” Netflix said in a letter to investors, “however, building a business from the ground up takes time, and combined with the size of our subscription revenue, we do not expect advertising to be the primary driver of revenue growth in 2024 or 2025.”
The company said it expects third-quarter revenue to increase 14% from the same period last year.
The company warned that subscriber growth would be lower compared to the same period in 2023, the first quarter to benefit from Netflix’s crackdown on password sharing.
Marking the third year of its video game efforts, Netflix has announced that it will release a multiplayer game based on the Korean dystopian drama series “Squid Game” when it premieres season two of the series later this year.
They are also planning games related to “Emily in Paris” and “Selling Sunset.”
