Netflix starts again with a new subscriber record

Netflix gets off to a great start with a new record of subscribers

UPDATE DAY

Netflix had promised one million, but in the end some 2.4 million additional subscribers joined the platform this summer, a victory for the streaming leader which took drastic measures after its setback of the first half. 

In all, according to its earnings press release published on Tuesday, Netflix now has more than 223 million subscribers, thus exploding its record at the end of 2021 (221 .8 million), the result of two years of pandemic ultra favorable to online entertainment services.

Its title jumped about 14% in electronic trading after the closing of the New York Stock Exchange.

“After a difficult first half, we believe we are on the path to further accelerated growth. The recipe is to please our members”, assured the Californian group, which had lost nearly 1.2 million subscribers between the end of December 2021 and June 2022.

He is now betting out of 227.6 million total subscribers by the end of the year.

Netflix will launch a new cheaper monthly subscription in November, but with advertising, in order to attract new consumers and earn additional income.

The new offer will cost $6.99 per month in the United States (5.99 euros in France for the “Essentiel” rate with advertising) and will include 15 to 30 second ads, broadcast at the beginning and in the middle of the programs. /p>

The Californian group assured last week that advertisers, from car and luxury brands to tour operators, were there. “We pretty much sold out of our inventory for the launch,” advertising manager Jeremi Gorman said at a press conference.

Reversing the trend

Netflix has also welcomed the fact that its users spend more time on its service than those of its competitors.

“In the United States United, Netflix accounts account for 7.6% of time spent watching TV,” the statement noted, citing figures from research firm Nielsen.

Its financial results also exceeded expectations, in particular its net profit of 1.4 billion dollars for the period from June to September, instead of the 966 million expected by analysts. Its revenue was $7.9 billion.

“By directly recognizing (the importance) of competition and using advertising, Netflix is ​​adapting to the new reality of the streaming industry,” commented Insider Intelligence analyst Ross Benes

In the spring, following news of his first subscriber loss in a decade, the industry veteran had taken various steps to reverse the trend.

In addition to the decision to add an offer with advertising, Netflix had also indicated that it was going to tighten the screw on the side of the sharing of identifiers and passwords, which allow many people to access the content of the platform without paying.

As a first step in this direction, the company presented on Monday a new tool so that users can transfer their profile (with their preferences and their history) when they open their own account.