The other day, Netflix shared its Q3 2022 earnings and at that time, we learned they’ve managed to add 2.4 million new subscribers — a higher mark than the forecasted one million.
The streaming platform has reported a 6% year-over-year revenue increase, not least thanks to a 5% increase in average paid memberships brought about by 2.4 million subscribers. However, compared to the previous quarter, the revenue had stayed around the same — at nearly $8 billion for the quarter.
Nevertheless, this is a major win for Netflix, which lost one million subscribers in Q2. And while it did project losing around a million more, they at least saw some revenue growth — which again is related to the increased membership prices.
What’s more newsworthy is Netflix’s plan to introduce a new approach to tackle account sharing. To that end, the company will be adding new “sub-accounts” in early 2023, which will see the account holder paying for extra members like a friend or family member that aren’t part of the account owner’s household.
Moreover, to make this transition as smooth as possible, Netflix will offer a way for borrowers of an account to transfer their profiles to their own account once they make one. This feature will also make it easier for account holders to shed extra members from their accounts to avoid paying for them. The transfer “process” will cover recommendations, viewing history, content lists, saved games, and other personal preferences.
As for the recently revealed ad-supported plan, called “Basic with Ads,” it is set to launch on November 3 and cost $6.99 in the U.S. The plan is to roll out that plan in 12 different markets, which combined account for roughly $140 billion in brand advertising across TV and streaming.
Between the ad-supported plan and “sub-accounts,” Netflix aims to rope in nearly 40 million new subscribers by 2023.
As for the next quarter, the company projects it could earn around $7.8 billion in revenue. They say this slight decline is related to the strong dollar.
In the meantime, if you need a VPN for Netflix – you know where to find one, right? 😉