The streaming giant added 5.07 million subscribers in the third quarter, compared with 8.76 million net new subscribers during the same period a year earlier, when its password-sharing crackdown initially took hold. Netflix reported revenue was up 15% and net income rose 41% from a year earlier.
Netflix picked up 5.1 million streaming subscribers in the third quarter, topping Wall Street estimates by more than 1 million users, and said it expected higher customer growth around the holidays when Korean drama “Squid Game” returns.
Shares of Netflix rose 3.5% to $711.98 in after-hours trading.
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Investors had expected Netflix to bring in 4 million subscribers from July through September, according to analysts’ estimates compiled by LSEG. New programming during the period included murder mystery “The Perfect Couple” and romantic comedy “Nobody Wants This.”
According to Statista, subscribers are from diverse ethnic backgrounds – data on Netflix subscribers by ethnicity found that more Hispanic and African Americans watch Netflix on a daily basis than their white counterparts. Additionally, openly published data on the gender of Netflix employees in 2022 revealed that the company performs extremely well in terms of achieving an even split. Perhaps unsurprisingly, Netflix appeals to all age groups, and a survey indicated that the majority of adults aged 18 to 54 years old subscribed to the service.
Due to losses in its subscriber base recorded in the first half of 2022, Netflix introduced an ad-supported tier in November 2022 to offset customer and revenue declines. Indeed, recent data showed that nearly one in three sign-ups to Netflix in September 2023 were on the ad-supported plan. Furthermore, while the subscription revenue of the streaming provider is expected to decline in the years to come, the advertising revenue is forecast to increase, showing the high value of hybrid business models to the streaming market these days.
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