The figure is beyond Netflix’s expectations. After having suffered a historic decline in the first half of the year, the streaming leader had promised a rebound by counting on one million additional subscribers worldwide. In the end, some 2.4 million new customers joined the American platform in the third quarter.
In all, according to its results press release published on Tuesday, October 18, Netflix now has 223 million paying subscribers, thus beating its record at the end of 2021 (221.8 million), the result of two years of an ultra-favorable pandemic for services. online entertainment.
“Thank God we’re done with the down quarters”exclaimed Netflix co-founder Reed Hastings during a videoconference on Tuesday. “We must continue on this momentum”he added.
The company had suffered the blow, at the beginning of 2022, by seeing its number of subscribers drop by nearly 1.2 million over six months. This new figure allows Netflix to regain – at least temporarily – the place of the largest video streaming service in the world. Disney eclipsed it in August by announcing that it had 221 million subscribers, a number that will be updated on November 8 when it publishes its summer results.
“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.
4.5 million more subscribers expected with the new subscription
For the current quarter, Netflix can count on the return of popular series such as Emily in Paris or The Crown, but also on the launch, in November, in the United States and on eleven other markets, of a new, less expensive monthly subscription, but with advertising. Netflix has long refused this less prestigious solution, but the platform now hopes to attract new consumers and earn additional revenue with this means.
This 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. That’s less than half the price of the ad-free plan of $15.50.
The Californian group assured last week that advertisers – ranging from car and luxury brands to tour operators – were there. “We have sold almost all of our inventory for the launch”said Jeremi Gorman, the publicity director, during a press conference. “We are forced to refuse people at the moment”added Greg Peters, the director of operations, specifying that Netflix and Microsoft, its technology partner for advertising, would have to recruit new employees to meet the demand.
Netflix predicts that this new subscription will bring it an additional 4.5 million subscriptions during the fourth quarter, and is now betting on more than 227.5 million total subscribers by the end of the year.
“All the Planets Align”
The platform is also pleased 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,” notes the statement, citing figures from research firm Nielsen. According to the latter, in August and in the United States, Netflix accounts represented the same percentage of time spent watching television as YouTube, well ahead of Amazon Prime Video (2.9%) and Disney + (1.9%). ).
Netflix’s financial results also exceeded expectations, including net income of $1.4 billion (euro equivalent) for the June-September period, instead of the $966 million expected by analysts. Revenue was $7.9 billion. Its title jumped about 14% in electronic trading after the closing of the New York Stock Exchange. “All the planets align for us”rejoiced Reed Hastings again.
In the spring, after reporting its first loss of subscribers in a decade, industry veteran Netflix took various steps to reverse the trend. In addition to the decision to add an offer with advertising, the group had 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. form without paying. As a first step, the company introduced a new tool on Monday so that users who share an account can transfer their profile (along with their preferences and history) when they eventually sign up for their own subscription.