As part of its quarterly earnings report, Netflix announced that it added 2.4 million subscribers in the third quarter, double the expected number. The firm had lost 200,000 subscribers in Q1, a first, and then another million subscribers in Q2. It now has 223 million paying subscribers.
Netflix posted a net income of $1.4 billion on revenues of $7.9 billion for the quarter ending September 30, 2022. That latter figure is up 6 percent.
“After a challenging first half, we believe we’re on a path to reaccelerate growth,” a Netflix letter to shareholders reads. “The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us.”
The Netflix report is full of competitive comparisons and promised future growth. The firm claims that it has higher engagement than any of its competitors—and claims that they are all losing money, with a combined 2022 operating loss of “well over $10 billion.” By comparison, Netflix posts a $5 to $6 billion annual operating profit.
Looking to the future, Netflix says that it expects revenues of roughly $7.8 billion in the current quarter, and says that figure would be higher if it weren’t for “the continued strengthening of the US dollar vs. other currencies.” It also expects to end the quarter with 4.5 million paying subscribers, with subscriber growth of about 6 percent.
Of course, what Netflix isn’t saying is that future growth depends in large part on it grabbing more revenues from existing customers—by charging more to customers who share their account with family members—and by entering new markets, like cloud gaming. The firm also recently announced an ad-support plan to goose subscriber numbers.