Netflix starts again with a new subscriber record

SAN FRANCISCO: Netflix had promised a million but in the end some 2.4 million additional subscribers joined the platform this summer, a victory for the streaming leader which took drastic measures after its first-half decline.

In all, according to its results press release published on Tuesday, Netflix now has more than 223 million subscribers, thus exploding its record at the end of 2021 (221.8 million), the result of two years of pandemic ultra favorable to entertainment services. on line.

Its title jumped about 14% in electronic trading after the closing of the New York Stock Exchange.

“After a difficult first half, we believe we are on the path to accelerated growth again. The recipe is to please our members”, assured the Californian group, which had lost nearly 1.2 million subscribers between the end of December 2021 and June 2022.

He is now betting on 227.6 million total subscribers by the end of the year.

Netflix will launch a new cheaper monthly subscription in November, but with advertising, in order to attract new consumers and earn additional revenue.

The new offer will cost 6.99 dollars per month in the United States (5.99 euros in France for the “Essential” rate with advertising) and will include ads of 15 to 30 seconds, broadcast at the beginning and in the middle of the programs.

The Californian group assured last week that advertisers, from car and luxury brands to tour operators, were there. “We pretty much sold out our inventory for the launch,” Jeremi Gorman, the publicity manager, said at a press conference.

Reverse

Netflix has also welcomed the fact that its users spend more time on its service than those of its competitors.

“In the United States, Netflix accounts account for 7.6% of time spent watching television,” the statement noted, citing figures from research firm Nielsen.

Its financial results also exceeded expectations, in particular its net profit of 1.4 billion dollars for the period from June to September, instead of the 966 million expected by analysts. Its turnover amounted to 7.9 billion dollars.

“By directly acknowledging (the importance) of competition and using advertising, Netflix is ​​adapting to the new reality of the streaming industry,” commented Ross Benes, analyst at Insider Intelligence.

In the spring, after the announcement of its first loss of subscribers for ten years, the veteran of the sector had taken various measures to reverse the trend.

In addition to the decision to add an offer with advertising, Netflix had also indicated that it was going to tighten the screw on the side of the sharing of identifiers and passwords, which allow many people to access the content of the platform without pay.

As a first step in this direction, the company on Monday presented a new tool so that users can transfer their profile (with their preferences and history) when they open their own account.

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Netflix starts again with a new subscriber record


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