Netflix, the industry leader in streaming, announced on Tuesday that it gained 2.4 million new customers this summer, making up for declines in the first half of the year.
According to Netflix’s third-quarter financial data, the company recovered from a loss of almost a million customers in the first half of 2022 with a spike from July to September that brought its subscriber count to a new high of 223 million.
The business stated in a letter to shareholders on Tuesday that it “believes we’re on a road to reaccelerate growth” and added that the key to growth going forward is “satisfying members” with Netflix programs and movies so that they spread the word of the service to their friends and remain subscribers.
The firm has long advertised ad-free content behind a subscription fence, but in addition to its ad-free plan, it will soon introduce a more affordable, ad-supported plan in a select number of nations.
While claiming that “they are all losing money” as they try to expand, Netflix claimed that its main streaming rivals, Amazon, Disney+, and Hulu, are “spending aggressively to drive subscribers and engagement.”
In addition to a premium membership rise of 4.5 percent since the third quarter of the previous year, the firm announced third-quarter revenue of $7.9 billion, year-over-year revenue growth of 5.9 percent.
The estimated fourth-quarter result, at roughly $7.7 billion, still boasts 0.9 percent sales growth from last year, despite the modest revenue decrease that is anticipated between the third and fourth quarters.
The company added that as it enters the advertising market and adjusts other aspects of its business model, it is “increasingly focused on revenue as [its]principal top line indicator” rather than considering subscribers to be the most crucial factor.
