Wednesday 19 October 2022 12:01 AM Netflix makes unexpected comeback after success of hit shows Stranger Things ... trends now
Netflix made an unexpected comeback in the third quarter of this year, following the success of shows like Stranger Things and Dahmer.
Executives at the streaming giant announced on Tuesday that the platform added 2.4million subscribers between July 1 and September 30 after two consecutive quarters losing subscribers.
That is more than double what Wall Street expected.
Netflix also topped Wall Street projections with revenue of $7.9billion — up 6 percent from one year earlier. Those earnings among to $3.10 per share, after the companies share prices fell nearly 60 percent over the year.
But shares have now jumped 14 percent in after-hours trading, boosted in part by the streaming service's forecast that it would pick up another 4.5million customers in the fourth quarter.
Netflix, though, projects revenue to once again fall in the fourth quarter to $7.8 billion due as inflation continues to rise.
The gains come after Netflix released the final episodes of the fourth-season of its sci-fi hit Stranger Things, as well as its new serial-killer series Dahmer-Monster: The Jeffrey Dahmer Story, which became one of Netflix's most-watched series of all time.
'Netflix's impressive numbers show the company's growth story is far from over,' said Investing.com analyst Haris Anwar, as Wall Street investors focus on whether streaming platforms can continue making subscriber gains amid fears of a recession.
Netflix announced on Tuesday that it gained 2.4million subscribers between July 1 and September 30. The streaming giant released the last few episodes of the fourth season of Stranger Things during that time
The announcement comes after Dahmer-Monster: The Jeffrey Dahmer Story, became one of Netflix's most-watched series of all time
Share prices of the company fell nearly 60 percent over the year, but climbed 14 percent following the announcement on Tuesday
The report comes as Netflix executives work to revitalize its membership growth after a sudden decline in the first half of the year, when the company's subscriber base shrunk by a whopping 1.2 million people.
It now has a total of 223.1million subscribers around the world, with much of the gains coming from the Asia-Pacific region, where the streaming service gained 1.4million subscribers, according to The Hollywood Reporter.
And in Latin America the streaming service gained 310,000 subscribers, while in the Europe, Middle East and Africa region, Netflix gained 570,000 subscribers.
But in the United States and Canada, Netflix only made modest gains of 100,000 subscribers as the market reaches maturity and newer entrants — like Paramount+ — are picking up more subscribers because they offer live sports programming.
In its quarterly letter to shareholders, Netflix executives, though, noted that rival media companies are losing money from streaming as they try to attract viewers.
Companies like Disney, for example, run multiple businesses including television networks and theme parks to offset streaming losses.
'Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard,' the letter said.
It estimated that competitors would end
