After what was a challenging first half of the year, Netflix now believes it is “on a path to reaccelerate growth”.
The latest results released by the company show that its revenue, operating income and membership in Q3 slightly exceeded its forecast. It adds that despite its competitors investing heavily to drive subscribers and engagement, they are all losing money, with combined operating losses of well over $10 billion in 2022. It, on the other hand, expects to have an annual operating profit of $5-6 billion.
Netflix had revenues of $7,926 million in Q3, or 5.9% more than in the same period last year. Its net income was $1,398 million, slightly down on the $1,449 million figure posted in Q3 2021.The number of global paid memberships stood at 223.09 million, up 4.5% on a year earlier, with 2.41 million additions after losses in the first two quarters.
Netflix confirmed that it will launch its new ad-supported plan in 12 markets next month, starting in Canada and Mexico. Together, these markets account for around $140 billion of brand advertising spend across TV and streaming, or over 75% of the global market.
It has also said it will monetise password sharing from early 2023. “In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular”.