Netflix Surpasses Expectations: Streaming Giant Continues to Dominate Entertainment Landscape

• Netflix reported its third-quarter earnings on Thursday.
• New-subscriber numbers beat analysts' expectations at 5.07 million, indicating strong user acquisition for the streaming service.
• The streaming service is trying to grow new sources of revenue, such as gaming and advertising.

Netflix's subscriber base grew more than expected during its third quarter, indicating that its effort to cut down on password sharing was still yielding new sign-ups and aiding customer retention.

The streaming subscribers totaled 5.07 million in the quarter, above analyst estimates.

Netflix's quarterly revenue of $9.83 billion also slightly exceeded forecasts, boosting its stock price in after-hours trading. The financial performance demonstrates Netflix's continued revenue growth and ability to generate advertising revenue from its ad-supported tier.

Netflix's subscriber additions have consistently surpassed analysts' expectations in recent quarters. Its initiative to limit password sharing is resulting in more people signing up for their own Netflix accounts, a savvy strategy to expand its subscriber base. However, Netflix plans to stop reporting quarterly streaming subscribers starting in 2025. Analysts covering Netflix said they anticipate the subscriber growth from the password sharing ban will decelerate going forward. Instead, they expect Netflix to drive revenue growth through its expanding ad sales and gaming business, price increases, new programming, and international expansion in the competitive streaming market.

Looking ahead, key factors that could impact Netflix's future earnings include its content strategy, operating margin, profit margins, live events, and ability to attract and retain customers in the evolving streaming landscape.

Source: https://www.businessinsider.com/netflix-new-subscriber-numbers-beat-expectations-2024-10