📺 Netflix’s revenue stream(ing)

More twists than “Dahmer”… Netflix shares spiked 13% yesterday after investors learned it added 2.4M subs last quarter — its first subscriber gain of the year. Netflix had forecast adding just 1M after losing 1M through June. While profit ticked down from last year, revenue was up as subscribers kept bingeing through price hikes from earlier this year. Now Netflix will stop sharing subscriber forecasts as it focuses on revenue:

• In with the new: Next month Netflix is set to launch its $7/month ad-supported plan in a dozen countries.
• Out with the old: Netflix has said it’s going to crack down on the 100M households streaming without an account (no more mooching on your ex's password).

Checking the Netflix Top 10… for show inspo. Netflix still accounts for about 8% of Americans’ TV watch time — more than Prime Video, Disney+, and Hulu. But as budgets suffer, more US adults have canceled Netflix than any other streaming service, and a quarter of users say they’ll cancel by the end of this year. To keep subscribers loyal, Netflix is splitting up season releases of hit shows (think: “Ozark” part one). Its cheaper ad tier could help too.

Want that $300 North Face now… want to pay for it later. Buy now, pay later companies like Klarna, Affirm, and Afterpay help you sport that puffer ASAP and pay in monthly installments. You’ve probably stumbled across BNPL options at digital checkouts, but BNPL companies also have their own platforms to help you discover products and deals from brand partners. Now Klarna has given its site and app a social-friendly revamp:

• Klarna launched TikTok-style shoppable videos (think: snappy makeup tutorials). The feature is already being used by Lady Gaga’s Haus Labs, e.l.f. Cosmetics, and others.
• It also unveiled a “Creator” app for brands and influencers to collab on campaigns.

Hearting the “Holy Hydration” serum… After watching an e.l.f. skincare tutorial, all in the Klarna app. Klarna has 150M users BNPL’ing from its 450K retail partners, but it wants to be more than a payment option on a third-party site like Levi’s — it wants to be a destination. In recent years, social titans have been doing the opposite: trying to be more like shopping platforms.

• TikTok started allowing Shopify merchants to add “shopping” tabs to their profiles and create mini storefronts. It’s also experimenting with live-stream shopping.
• Facebook launched Instagram Shop, letting businesses set up storefronts on their pages to sell products featured in posts.

• Mixed: Tesla is speeding up and braking at the same time: the EV giant cut its full-year delivery target as supply snags kill its vibe, but Musk’s baby says demand is strong — and that it reported a near-record profit.
• Soar: United shares jumped 7% yesterday after it significantly boosted its profit forecast, partly thanks to workers being “untethered from the desk.” Delta also expects more momentum from remote workers.
• Unhealthy: About 15M Americans might lose their health insurance if President Biden declares an end to the Covid public-health emergency, which could happen in January. US Medicaid enrollment hit a record during the pandemic.
• Ads: Your next Uber ride could be #sponsored: Uber announced plans to let marketers target riders by destination with “journey ads” during rides. Think: Expedia ads en route to JFK.
• Reset: Zillennial staple Shein launched a US resale platform for “pre-loved” clothes and speedier shipping ahead of a rumored IPO. The super-fast-fashion brand has been accused of having unsustainable practices.

• Jobless claims
• Earnings expected from Snap, American Airlines, Alaska Air, Union Pacific, Boston Beer Co., AT&T, and Nokia

Authors of this Snacks own: shares of Tesla, Snap, Shopify, Netflix, Uber, Disney, AT&T, and Delta

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