Netflix announced on the 18th (local time) that the number of subscribers in Q3 increased by 2.41 million compared to the previous quarter. It is interpreted as a sign of a revival of Netflix, which lost subscribers in the first half of this year and faced a recession. The stock price jumped nearly 15% in after-hours trading.
The Wall Street Journal (WSJ) and Reuters reported on the 18th (local time) that Netflix’s new paid subscribers in Q3 exceeded the forecast of 1.07 million people tallied by financial information company Refinitiv from July to September.
In addition, Netflix’s sales during the same period increased by 6% compared to last year to $7.93 billion, and its earnings per share (EPS) was $3.10. It exceeded market expectations ($7.837 billion). As of the third quarter, the total number of paid subscribers was 223.09 million, and the number of subscribers increased by 2.41 million in the third quarter alone.
In particular, Asia has the largest increase in new subscribers. 1.43 million people have been newly added in the Asia-Pacific region. The number of new members in North America increased by only 100,000. Netflix said, “In addition to the dramas ‘Stranger Things Season 4’ and ‘Dammer,’ Korean content ‘Extraordinary Lawyer Woo Young-woo’ also helped attract new viewers.” In a shareholder letter, Netflix said, “We are on the way to accelerating growth again after the first half of the year.”According to Netflix, “Extraordinary Lawyer Woo Young-woo” topped the weekly non-English-speaking series in 28 countries, recording 402 million hours of viewing time. it was named the sixth most successful non-English-speaking series on Netflix in four weeks.
Netflix also predicted that the number of subscribers will increase by 4.5 million in the fourth quarter, with the total number of paid members reaching 227.59 million. Reuters said, “Netflix presented a fourth-quarter forecast that exceeded Wall Street expectations,” adding, “The advertising plan will help secure new subscribers in the fourth quarter.”
In order to improve profitability, Netflix will release a lower price plan instead of watching advertisements in 12 countries, including Korea and the United States, starting early next month.