Netflix added 2.4 million new users in the third quarter of the year according to its latest quarterly accounts report, which exceeded the company’s own expectations, since it had planned to increase its customer base by just one million subscribers.
Source: EFE
The “streaming” giant has achieved 1,398 million dollars in net profits in this period and has managed to reverse the trend that it had been dragging in recent months, with a constant loss of clients that led its stock price to suffer the greatest collapse of his story.
After the publication of the results, the value of the shares of the company based in Los Gatos (California, USA) rose up to 10% in the operations after the closing of the New York parks.
Just a few days ago, Netflix announced a new monthly subscription model that includes ads in exchange for reducing its price in order to retain a customer base that currently exceeds 227 million subscribers.
“Improving our pricing strategy is an important objective,” the company explained in a letter addressed to investors, in which it argued that the 12 countries in which the new offer will be implemented this November account for 75% of the global market. .
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In this way, Netflix hopes to “increase its income and profits” thanks to two factors: Achieving new subscribers and that those users who share an account among several households decide on a cheaper individual plan.
Thus, for the last months of the year it has been proposed to add 4.5 million customers.
Regarding the benefits of the third quarter of the year, the company achieved 1,398 million dollars, a figure slightly lower than the same period last year, when it raised 1,449 million.
However, its total turnover remains stagnant at 7,926 million dollars and forecasts for the next quarter estimate that it will remain at 7,776 million.
“After a challenging first half, we believe we are on the right track to accelerate growth. The key is to please the members and that is why we focus on winning the competition on a daily basis. When our series and movies are exciting, they tell their friends and more people decide to stay with us,” the letter argued.
Among the most successful recent titles, Netflix cited “The Jeffrey Dahmer Story”, “Stranger Things S4”, “Extraordinary Attorney Woo”, “The Gray Man” and “Purple Hearts”.
“While we have made our mistakes, we have also managed to create a wide catalog of series and movies for any mood or taste, from incredible storytellers from around the world,” the company celebrated triumphantly.
ADVERTISING AND CHARGES FOR SHARING ACCOUNTS ON THE HORIZON
Since the signs of stagnation began to arrive at Netflix earlier this year, the company’s founders, Reed Hastings and Ted Sarandos, have promised to “adjust their cost structure” to fit their “current growth rate.”
In addition to laying off more than 300 employees, the company has signed a contract with Microsoft to introduce advertising to its service, which will begin next month.
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His next goal will be for the accounts shared between several households to be translated into individual subscriptions.
For this, it is already charging an extra in Chile, Costa Rica and Peru for sharing access codes and has developed an application that allows the profile of a common account to be transferred to an individual one, maintaining the viewing history and recommendations.
With 227 million customers, Netflix is the world’s leading streaming platform, though it’s hard to make a comparison in an increasingly saturated market.
Amazon, for example, only acknowledges that 200 million customers play video on its e-commerce platform. And Disney adds more than 220 million subscribers between its different platforms: Disney +, Hulu, Star and ESPN +. Apple, for its part, brings together more than 40 million Apple TV + users.
