After battling to retain users in the face of competition and the rising cost of living, Netflix has now stopped losing members.
The streaming juggernaut’s user base increased by 2.4 million homes between July and September.
Raising its prices in important markets helped it recover from the losses it experienced in the year’s first half.
Popular shows like Monster: The Jeffrey Dahmer Story and Stranger Things encouraged visitors to return to the website.
The business anticipated that subscription growth would continue in the upcoming months. Additionally, it is implementing several measures, including introducing a less-priced version .
The business stated that a broader implementation of additional fees targeted at customers who share their accounts is being tested in some regions of Latin America.
The corporation announced the creation of a method to transfer user profiles, view history, and preferences to new accounts a day prior, ensuring that customized settings would not be lost.
Analysts predicted that the changes would increase the company’s profitability. However, many people question if the company has much more room to expand. Particularly in core regions like the US, where much of the competition has also seen subscriber growth recently.
The Q3 gains
According to the company, the most recent quarter saw growth driven by new subscribers from Asia-Pacific, pushing Netflix’s total to over 223 million.
According to the streaming juggernaut’s most recent financial statement, Netflix currently accounts for over 8% of all video viewing time in the UK and 7.6% of TV viewing time in the US.
In the US, that is closely tied with YouTube but much ahead of competitors like Amazon and Disney.
Cobra Kai, Stranger Things, and The Crown, three Netflix series, continue to top rankings of the most watched streaming programs.
However, following a surge during the pandemic, the business has found it challenging to draw in new customers and keep the loyalty of current ones.
Price increases in essential areas like the US and UK contributed to the issue, mainly because consumers are cutting back.
Netflix’s biggest competition in the streaming business includes, Disney+, Apple TV, HBO Max, Amazon Prime, and YouTube.
The company’s shares have fallen this year, forcing it to reevaluate critical aspects of its business. This includes advertising and delaying the release of popular shows like Stranger Things.
The business implied in a letter to investors that this will not become the norm, pointing out that bingeing encourages “substantial engagement.”
Additionally, executives argued that they had figured out how to produce shows and make a profit before their rivals.
Netflix shares increased by more than 10% following the publication.
Netflix wants to disrupt the worldwide TV ad market
Around a decade ago, Netflix Inc. completely changed the global entertainment landscape. With a streaming video service that obsolete movie and network television showtimes.
Now that pay TV is on its final legs, Netflix is vying for its estimated $153 billion annual global advertising income.
The business and several analysts saw its new, less expensive ad-supported service, as a means to increase revenue. However, as TV’s viewership declines, it loses appeal to advertisers and becomes a prime target for disruption by Netflix.
Reed Hastings, co-CEO of Netflix, claimed the realization struck him after hearing recently how traditional TV was “marching toward a precipice” by former Disney CEO Bob Iger.
In the US and 11 other nations, Netflix intends to introduce an ad-supported version of its service in November. It will cost $6.99 a month in the US, which is 30% less than its entry-level ad-free tier. In addition, it will have five minutes of commercials per hour.
Read Also: Netflix ad-supported service to launch in November
In the future, Netflix, currently available in more than 190 countries. It hopes to offer “tailored” advertising, similar to how it suggests unique viewing recommendations.
