Netflix expects its profits to double this quarter after the world's largest streaming service added more than 5 million new subscribers this summer.
After cracking down on password sharing, introducing advertising to its services and investing billions in live broadcasting, the group declared it had “accomplished” its plans to strengthen its business.
In the last quarter, hits like “The Perfect Couple” and “Emily in Paris” drew viewers to the platform. Netflix is hoping the new season of Squid Game will increase viewership as the year draws to a close.
The company's paid subscriber base increased by 5.1 million in the three months ended September 30 to a record 282.7 million. Netflix's revenue rose 15% to $9.83 billion, and net income rose 41% to $2.36 billion.
The company expects net income for the current quarter to be $1.85 billion, up from $938 million a year earlier, as it seeks to shift investors' attention away from viewership growth.
Netflix stock rose 4.5% in after-hours trading.
“We have achieved our plans to reaccelerate our business,” the company said in a letter to shareholders. “As we look to 2025, we are focused on improving every aspect of our service and continuing to deliver healthy revenue and profit growth.”
Los Gatos, California-based Netflix is at the vanguard of the streaming revolution. Old Hollywood giants, from Disney to Warner Bros., are still scrambling to catch up and cash in on the digital services of their rivals.
The subscriber boom continued early in the pandemic as much of the world was stuck at home, but stalled in 2022 as restrictions were lifted and viewers began to venture beyond the couch. did. But Netflix stock has since soared as the company reassured Wall Street that it was taking steps to regain momentum.
The company has also invested heavily in live broadcasts, signing a 10-year deal with World Wrestling Entertainment (WWE) and acquiring the rights to broadcast two NFL games on Christmas Day.
The platform is preparing to stream a match between YouTube star Jake Paul and boxer Mike Tyson next month. Last week, the company also announced It plans to launch a weekly live talk show hosted by comedian John Mulaney next year.
“Netflix has managed to establish a virtually irreversible lead in the streaming wars, and competitors are losing ground on Netflix's business,” Wedbush analysts told clients ahead of Thursday's earnings report. “We expect to fall behind while trying to imitate the model,” he told customers. The company added that it had “arrived at the right formula for global content production, balancing costs and increasing profitability.”
