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Netflix reversed customer losses and presented a little more optimistic prognosis than Wall Street predicted, estimating that a new ad-supported streaming option will help recruit 4.5 million members by the end of the year.

From July through September, Netflix added 2.4 million new customers globally, more than double the 1.07 million consensus projection of Refinitiv analysts surveyed.

During the quarter, Netflix aired the last episodes of the sci-fi sensation “Stranger Things,” as well as the serial-killer series “Dahmer – Monster: The Jeffrey Dahmer Story,” which quickly became one of Netflix’s most-watched series of all time.

The streaming giant is striving to re-establish membership growth following a 1.2 million drop in the first half of the year due to a shaky global economy and more competition for online video watchers. Netflix currently boasts a global subscriber base of 223.1 million people.
In the United States, when the industry has achieved maturity, most established services have ceased growing. Because of live sports content, newer entrants, such as Paramount Global’s Paramont+, are gaining market share.

Netflix emphasized in its quarterly letter to shareholders that competitor media businesses are losing money as they struggle to acquire streaming consumers.

“Our rivals are substantially investing to generate subscriptions and engagement, but developing a large, successful streaming company is difficult,” according to the letter.

Netflix will launch a $6.99 ad-supported streaming subscription next month.
Netflix anticipated that competitors’ total operational losses will be “far over $10 billion” by 2022, compared to Netflix’s yearly operating profit of $5 billion to $6 billion.

Netflix exceeded Wall Street expectations in the third quarter, with revenue of $7.9 billion, up 6% year on year. Earnings per share were $3.10.

The company’s prediction of 4.5 million client pickups by the end of 2022 was somewhat higher than Wall Street expectations of 4.2 million. Netflix expects revenue of $7.8 billion in the fourth quarter, a sequential fall it attributes to the high strength of the US dollar.

To entice cost-conscious users, Netflix will debut a $7-per-month streaming package with advertising in early November, a step management have long opposed. In the struggle for audiences, Walt Disney, Warner Bros. Discovery, and other businesses provide, or plan to offer, ad-supported services.

While Netflix is making adjustments to boost growth, the business has stated that it will continue to release all episodes at once to allow for binge watching.

“We think that allowing our members to immerse themselves in a tale from beginning to end not only boosts their enjoyment but also increases their probability of telling their friends, which means more people watch, join, and stay with Netflix,” the firm stated.

During the fourth quarter, a new season of the British monarchy drama “The Crown” will be released, as will a sequel to the 2019 film “Knives Out.”

What do you think of that Netflix users’ base spike? Please let us know in the comments.