Netflix exceeded expectations with revenue and the number of new users
If the coronavirus pandemic diminishes and there are no other unpleasant surprises, we can expect more new original titles during 2022.
After a disappointing performance during the first half of the year, here’s some good news for Netflix. This online video streaming platform managed to exceed analysts' expectations by increasing user numbers and earnings during the third quarter of this year, while revenue was in line with forecasts.
In the previous quarter, they generated revenue of $7.48 billion (last year it was $6.44 billion in the same period). It was projected to add 3.72 million new subscribers, but that number ended up being 4.38 million. They recorded 2.2 million last year, and only 1.5 million in the second quarter of this year.
Netflix announced that by the end of this year they plan to add 8.5 million users who will pay the subscription, compared to 8.32 million as expected by analysts. Still, the 25.9 million users from the first half of 2020 will still remain an untouchable record.
The success of the Korean TV series "Squid Game" certainly contributed to the good result, which should bring Netflix close to $ 900 million in value with much lower production costs (about $ 21.4 million).
This series was watched by 142 million people in the first four weeks of streaming, and Asia also led in the number of newly added users. Their number in that part of the world has more than doubled compared to the previous quarter.
From now on, Netflix will also report the number of hours viewed instead of the number of user accounts, as they believe that this is a better indicator of the success of individual titles and user satisfaction.
During this quarter, more popular titles should resume showing. Among them are The Witcher, You, Tiger King, and Cobra Kai, and we can expect premieres such as Red Notice and Don't Look Up.
If the COVID-19 coronavirus pandemic subsides and there are no other unpleasant surprises that could cause filming and production to be suspended altogether, Netflix expects more new original titles during 2022, Yahoo writes.
Check out the trailer for "Red Notice" here!
By: Sarah R.
