Oh boy, folks, Netflix is making waves again, and this time it’s not just from their new releases! The streaming giant announced some impressive growth in its subscriber base after the market closed on Wednesday. It turns out, cracking down on password-sharing and introducing a new ad-supported tier has done wonders for their numbers. They’ve added 8.76 million global subscribers in the third quarter alone. Yes, you read that right, 8.76 million! That’s way beyond the 5.49 million Wall Street had predicted – talk about exceeding expectations!
It’s the biggest quarterly addition to the Netflix family since they added 10.1 million subscribers back in Q2 of 2020 when we were all locked up at home thanks to Covid restrictions.
Let’s break down the numbers for you guys: Earnings per share came in at $3.73, beating out the expected $3.49. Revenue matched expectations at $8.54 billion, and total memberships soared beyond expectations to hit 247.15 million.
What’s even more exciting is that their ad plan membership grew nearly 70% quarter over quarter – although Netflix is playing coy about what percentage of its base is subscribed to this tier.
Now let’s talk money – because who doesn’t love that? In Q3, Netflix saw its revenue rise to $8.54 billion from last year’s $7.93 billion. Net income? A cool $1.68 billion or $3.73 per share, compared to last year’s $1.4 billion or $3.10 per share.
These results are just another feather in Netflix’s cap as it continues to rule the streaming world with an iron fist while its competitors struggle to turn a profit.
And get this – Netflix has got so much mojo right now that it’s hiking prices for its basic and premium services starting this Wednesday! The basic plan will now cost you $11.99 a month (up from $9.99), and the premium tier will set you back $22.99 (up from $19.99), while the standard plan stays at $15.49.
But don’t worry, it’s not just about making more money. The company is also dealing with higher production costs, especially as it agrees to higher wages and benefits based on streaming popularity as part of its new deal with Hollywood writers.
What about negotiations with actors? Well, the talks have been stalled for a week now but Netflix and other members of the