The Angels. Netflix beat Wall Street expectations for the second consecutive quarter on Thursday, as ad-supported streaming plans helped attract 9.3 million new customers, almost double the analyst consensus forecast.
Netflix’s revenue rose 14.8 percent to nearly $9.4 billion during the period, in which the service released titles such as the sci-fi drama series “3 Body Problem” and the crime thriller “Griselda.”
Operating income amounted to $2.6 billion, an annual increase of 54 percent.
Analysts expected Netflix to gain about five million subscribers worldwide during the quarter, according to data from LSEG. The new additions brought Netflix’s total subscribers to 269.6 million at the end of March.
“We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach, and intense fandom, which drives healthy engagement on Netflix,” the company said in a letter to shareholders.
While competitors like Walt Disney lose money from their streaming activities, Netflix continues to gain customers and make profits. In the letter to shareholders, the company states that it will work to improve the variety and quality of its entertainment and expand its advertising business to continue growing.
Netflix began offering ad-supported plans in November 2022, which cost less than half as much as ad-free options. In 2023, it started a campaign against password sharing, trying to convert people who use friends or family accounts into paying subscribers.
The company says the ad-supported version of its service now accounts for 40 percent of all subscriptions in the markets where it offers this plan.
To satisfy its large global audience, Netflix has expanded its programming. The streaming service is expanding its sports offerings with a $5 billion, 10-year deal to broadcast the WWE wrestling show “Raw” starting in January 2025.
The company has recently restructured its film division under Dan Lin and aims to produce fewer, higher-quality movies for streaming.
#Netflix #shatters #customer #forecasts #quarter #row
– 2024-04-23 17:01:55
