Netflix increases prices and gains subscribers, despite ongoing strikes.
Breaking News: Netflix Surpasses Expectations, Raises Subscription Prices
LOS ANGELES (Reuters) – In a surprising turn of events, Netflix (NFLX.O) has exceeded expectations by gaining nearly 9 million new subscribers worldwide in the third quarter. This impressive growth has led the streaming giant to increase subscription prices for certain plans in the United States, Britain, and France. As a result, Netflix’s shares have skyrocketed by 13%.
The success of Netflix can be attributed to its international content, with shows like the live-action adaptation of the popular Japanese manga series “One Piece” gaining global popularity. Additionally, the streaming giant has attracted new audiences with licensed television shows such as “Suits” and “Band of Brothers.”
Netflix’s co-CEO, Ted Sarandos, expressed his satisfaction with the company’s performance, stating, “These are the times I’m glad we have such a rich and deep programming selection.” However, Hollywood labor tensions and ongoing strikes by actors remain a challenge for the industry.
Despite these obstacles, Netflix’s third-quarter customer gains have been the highest since the second quarter of 2020, when the COVID-19 pandemic led to a surge in streaming subscriptions. Investors have responded positively to this news, causing Netflix shares to rise to $390.80 in extended trading.
Analysts believe that Netflix’s recent crackdown on password sharing and its expansion into advertising have contributed to its growth. Paolo Pescatore, an analyst at PP Foresight, stated, ”It is firing on all cylinders, with recent efforts all heading in the right direction.”
Global Expansion and Financials
Netflix’s earnings report revealed that its global subscriber base reached 247 million by the end of September. The company experienced significant growth in Europe, the Middle East, and Africa, adding nearly 4 million subscribers in these regions. More than 70% of Netflix’s members now reside outside the United States.
Furthermore, Netflix’s revenue for the quarter amounted to $8.54 billion, meeting analyst forecasts. Earnings per share came in at $3.73, surpassing Wall Street’s expectations. However, the company’s fourth-quarter revenue forecast of $8.69 billion fell slightly below analysts’ estimates.
As a result of the ongoing strikes, Netflix has revised its content spending projections to $13 billion in 2023, assuming a resolution is reached soon. This is a decrease from the initial estimate of $17 billion.
Despite the challenges, Netflix remains a dominant force in the streaming industry. According to Nielsen data, Netflix programming accounts for 8% of television screen time, second only to YouTube.
Reporting by Lisa Richwine; Editing by Aurora Ellis, Bill Berkrot and Leslie Adler
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How has Netflix exceeded expectations and what has been the impact on its subscription prices?
Breaking News: Netflix Surpasses Expectations, Raises Subscription Prices
LOS ANGELES (Reuters) – In a surprising turn of events, Netflix (NFLX.O) has exceeded expectations by gaining nearly 9 million new subscribers worldwide in the third quarter. This impressive growth has led the streaming giant to increase subscription prices for certain plans in the United States, Britain, and France. As a result, Netflix’s shares have skyrocketed by 13%.
The success of Netflix can be attributed to its international content, with shows like the live-action adaptation of the popular Japanese manga series ”One Piece” gaining global popularity. Additionally, the streaming giant has attracted new audiences with licensed television shows such as “Suits” and “Band of Brothers.”
Netflix’s co-CEO, Ted Sarandos, expressed his satisfaction with the company’s performance, stating, “These are the times I’m glad we have such a rich and deep programming selection.” However, Hollywood labor tensions and ongoing strikes by actors remain a challenge for the industry.
Despite these obstacles, Netflix’s third-quarter customer gains have been the highest since the second quarter of 2020, when the COVID-19 pandemic led to a surge in streaming subscriptions. Investors have responded positively to this news, causing Netflix shares to rise to $390.80 in extended trading.
Analysts believe that Netflix’s recent crackdown on password sharing and its expansion into advertising have contributed to its growth. Paolo Pescatore, an analyst at PP Foresight, stated, ”It is firing on all cylinders, with recent efforts all heading in the right direction.”
Global Expansion and Financials
Netflix’s earnings report revealed that its global subscriber base reached 247 million by the end of September. The company experienced significant growth in Europe, the Middle East, and Africa, adding nearly 4 million subscribers in these regions. More than 70% of Netflix’s members now reside outside the United States.
Furthermore, Netflix’s revenue for the quarter amounted to $8.54 billion, meeting analyst forecasts. Earnings per share came in at $3.73, surpassing Wall Street’s expectations. However, the company’s fourth-quarter revenue forecast of $8.69 billion fell slightly below analysts’ estimates.
As a result of the ongoing strikes, Netflix has revised its content spending projections to $13 billion in 2023, assuming a resolution is reached soon. This is a decrease from the initial estimate of $17 billion.
Despite the challenges, Netflix remains a dominant force in the streaming industry. According to Nielsen data, Netflix programming accounts for 8% of television screen time, second only to YouTube.
Reporting by Lisa Rich
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