Netflix reported higher-than-expected revenue and profit, earning $2.36 billion and generating $9.82 billion in revenue, a 15% increase from the previous year. Netflix projects similar revenue growth for the fourth quarter, causing the stock price to rise nearly 4% after the earnings announcement. AP News reports.
However, Netflix’s subscriber growth slowed significantly during the summer, adding 5.1 million subscribers in the third quarter, a 42% drop from the same period last year. The slowdown in subscriber growth comes following the company’s crackdown on password sharing, which helped the service gain 57 million new subscribers over the past year. Netflix now has 282.7 million subscribers worldwide, the highest among streaming services.
The company plans to further focus on growing its advertising business, with co-CEO Greg Peters predicting ad sales will double in the next year. Netflix is also expanding its content offerings with live programming, including a boxing match between Mike Tyson and Jake Paul and NFL games on Christmas Day, as part of its strategy to keep viewers engaged.
