Netflix adds 9 million subscribers in Q3

The revenue of the company has grown 8% to $8.54 billion

by Team PITCH
Published - October 19, 2023
2 minute To Read
Netflix adds 9 million subscribers in Q3

Netflix has reported growth in profit as well as user numbers during the third quarter.

The streaming giant reported $8.54 billion of revenue during the three-month period ending September 30. This, according to the company, is a growth of 8 percent from a year earlier. The company credited the increase in revenue to better-than-expected growth in subscribers.

Netflix added nine million net paid subscribers in the quarter. The total global paid subscriber base now stands at 247.2 million.

The company’s net income was $1.6 billion, up nearly 20 percent from a year earlier. Netflix has announced that it will spend some $13 billion on content this year, down from $17 billion.

Netflix also said it was raising the monthly price for its premium ad-free service in the United States, to $22.99 from $19.99, and for its basic plan, which is available only to existing subscribers. It will also raise prices in Britain and France.

Ted Sarandos, co-chairman of Netflix, said in the earnings conference call that Netflix was “incredibly and totally committed to ending this strike,” pointing to how it has hurt the industry and the economy at large. But he added that a new demand last week from the actors’ guild — what he called “a subscriber levy that is unrelated to viewing or success” — “really broke our momentum.”

Netflix said its ad-tier memberships were up almost 70 percent. In addition, it said 30 percent of its new subscriptions in the 12 countries where the ad tier was available were for the less expensive option. It also said it was having success with its efforts to combat password sharing.

Further, Netflix said it expected net income to decline in the fourth quarter because of an increase in marketing costs associated with more movies and series being released, including the final season of “The Crown” and Zack Snyder’s big-budget sci-fi fantasy, “Rebel Moon.”

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