Netflix improves on all fronts. The combination of new content, payment plans with ads and the restriction on sharing accounts boosts results in the third quarter and takes the number of users to never-before-seen levels. Thus, the net profit reached 1,677 million dollars, about 1,600 million euros. It is 20% more than last year's 1,398 million and better than expected by the market.
The strikes of scriptwriters and actors, which are still ongoing, have not weighed on the business thanks to the fact that it had already completed its main productions. "The last six months have been challenging for our industry," the company notes about the stoppages. Despite the uncertainty in carrying out productions, subscriptions have grown by 11% in one year, to 247.1 million users, a new record. In three months it has added almost 9 million users. Income also improved, 8% compared to last year, with 8,542 million dollars -8,108 million euros-. "We are incredibly pleased with how it has gone," said co-CEO Greg Peters.
Investors celebrated the results, especially due to the growth in users: the company's shares soared up to 13% after the market closed. Their own forecasts, and those of analysts, have been exceeded due to the "growth" of the advertising-supported modality, which already accounts for 30% of new registrations in the twelve countries in which it is available. At the current rate, it is approaching 20 million new users this year, well above the 9 million in 2022.
New content such as the One Piece movie, the Suits series or sports-themed documentaries boost the numbers, explains the company based in Los Gatos, California. And advertising-supported plans and the restriction of accounts with shared passwords are taking effect. Netflix trusts that advertisers will redirect investment from traditional channels to streaming, in which it sees enormous business.
It will also venture into sports with the broadcast starting November 14 of The Netflix Cup, a golf tournament with a star from the professional circuit and Formula 1 drivers.
Netflix has taken the opportunity to announce that it will increase the prices of some plans in the US, United Kingdom and France by about 2 or 3 euros. The range of prices, in any case, is based on a base that "is much less than the average price for a movie ticket," he defends.
