Netflix reported better-than-expected quarterly results tonight, thanks to a recent price increase for its ad-free subscriptions and growth in ad-supported services. Earlier, measures against password sharing also helped boost user numbers.
Sales reached $9.5 billion, net profit rose to $2.1 billion (pdf).
Netflix had 277 million subscribers at the end of the quarter, 8 million more than the previous quarter. Wall Street had expected half that number.
Netflix is discontinuing its current Netflix Basic subscription in its home market, which currently costs $11.99 per month. Subscribers will have to upgrade to an ad-free Standard subscription for $15.49 or a new Basic subscription with ads for $6.99.
This is not yet the case in the Netherlands and Belgium, but it seems only a matter of time before this will also be implemented, Netflix Netherlands reports.
The company has gained more and more competitors over time. For example, Disney Plus is working on a more personalized algorithm for the recommendations of films and series. Furthermore, Disney wants to send emails to subscribers who have stopped watching a series halfway through to remind them that they can watch the series to the end.
Disney+ currently has 153.6 million paying subscribers worldwide. Disney’s streaming arm recently achieved profitability for the first time.
Netflix is trying to stay ahead of the competition by making unique content deals. In May, Netflix announced that it had acquired the streaming rights to two NFL games that will air on Christmas Day.
With the presentation of the figures, the reporting season has started again. Big Tech (including Apple, Alphabet, Meta and Amazon) will reveal their quarterly figures in the coming weeks.
Source: www.emerce.nl
