After what could be described as a rough year for Netflix, the streaming platform has made a comeback, based on its Q3 performance reports. Against all odds, the streaming platform managed to acquire new subscribers. And with its new ad-supported tier about to launch this November, Netflix predicts to see those subscriber numbers increase by the end of the year.
According to a report made by The New York Times, more than 2.4 million subscribers signed up to Netflix, ending the subscriber-dropping streak it had during the first half of 2022. Not only has Netflix gained subscribers, but it was also reported that the company generated around $7.9 billion in revenue during Q3, and shares went up more than ten percent.
Netflix told shareholders in its recent letter that the start of 2022 was “a challenge,” but the key to its recent success is “pleasing members.” The company has also mentioned goals to gain an extra 4.5 million subscribers by Q4.
“After a challenging first half, we believe we’re on a path to re-accelerate growth. The key is pleasing members.
Our revenue growth forecast is driven by our expectation for 4.5m paid net adds.”
Netflix has also announced new initiatives to combat password sharing, such as providing affordable ad-supported subscription tiers. The company also launched an experimental feature that charged users for having their accounts access “outside their homes.”
Netflix was under the spotlight during the first half of 2022 as the platform dropped in subscribers. The company lost around 200,000 subscribers during Q1 and over $54 billion in stock value, making it the worst performer in the stock market this year. Q2 wasn’t even smooth sailing for the streaming platform as it lost an extra 130,000 domestic subscribers, despite the release of Stranger Things Season 4.
Netflix’s recent drop in subscribers caught the attention of The Walt Disney Company as it announced that it surpassed Netflix in regards to total subscriber count. However, each of Disney’s streaming platforms, such as Disney Plus and Hulu, couldn’t surpass the streaming giant on its own.
Netflix could expect to grow in the coming months. Not only because of their new subscription offerings, but also due to the success of their recent content during the past few months.
