Netflix's crown is intact
Netflix reported yesterday that they had added 2.4m new subscribers last quarter, confirming that they still wear The Crown in the streaming wars — for now at least.
The return to growth couldn’t have come quicker for Netflix after a terrible first half of 2022 in which the company lost almost 1.2 million subscribers. Big TV hits like Dahmer, Stranger Things and Cobra Kai — the latter of which was the most-watched show on any streaming service in mid-September — have pulled Netflix out of the red.
With consumers tightening their belts, and competition in streaming as intense as ever, Netflix execs were noticeably relieved with CEO Reed Hastings saying “thank God we’re done with shrinking quarters”. Investors are pleased too — Netflix shares are up 12% at the time of writing.
All-you-can-watch
Looking ahead, Hastings' confidence that Netflix will keep growing is probably well-judged — the launch of a cheaper ad-supported tier should drive new subscribers, as could a further crackdown on password sharing.
Interestingly, Netflix also reiterated that they would be doubling down on the "binge" release model — citing global hit Squid Game as a show that might not have gone as viral if not for the momentum created by people being able to watch episodes back-to-back-to-back.
