ISLAMABAD: Netflix today reported that it gained over two million new subscribers in the recent quarter, throwing away investor fears that the entertainment giant was losing customers.
According to Netflix, the company ended the third quarter with more than 223 million subscribers worldwide, up 2.4 million.
Netflix shares in the stock market shot up more than 14 percent in after hours trading to $275.80 on the earnings news.
“After a challenging first half, we believe we’re on a path to reaccelerate growth,” Netflix said in an earnings letter.
“Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard.”
Netflix also reported a quarterly profit of $1.4 billion on revenue of $7.9 billion – a net income slightly less than in the same period a year ago when it brought in more money.
The turn-around in subscriber growth comes as Netflix is poised to debut a subscription option subsidized by ads in November across a dozen countries.
The ad-discounted tier will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.
The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.
“We are looking at a very light ad load with four to five minutes of ads per hour, and including some very tight frequency caps so that members don’t see the same ad repeatedly,” Peters said.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
