Netflix announced its third quarter financial results on Thursday. The number of new subscribers was 5.07 million, exceeding analysts’ expectations. Streaming services are looking to increase new revenue sources such as games and advertising.
Thank you for registering!
Access your favorite topics in a personalized feed on the go. Download the app
By clicking “Sign Up”, you agree to our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our settings page or by clicking “unsubscribe” at the bottom of the email.
Netflix’s subscriber base grew more than expected in the third quarter, showing that efforts to reduce password sharing are still generating new signups.
The company announced Thursday that its streaming service has added a total of 5.07 million new subscribers. Analysts surveyed by Bloomberg had expected 4.5 million. Netflix had 8.76 million paid viewers in the same period last year.
Quarterly revenue also came in at $9.83 billion, slightly above Bloomberg’s estimate of $9.78 billion.
Shares rose more than 4% in after-hours trading.
Netflix’s subscriber growth has far exceeded analysts’ expectations for the company’s past few quarters. It cracked down on viewers who shared login credentials and generated new subscribers. The company plans to stop publishing quarterly subscriber numbers in 2025.
On Thursday’s earnings call, analysts who follow Netflix said they expected the tailwinds from the password-sharing crackdown to wane in the future. Instead, it could boost revenue by expanding its advertising and gaming businesses and raising subscription costs, they said.
