While other streaming services are in the red, Netflix is profitable. The market leader has gained millions of new customers in recent months.
Netflix continues to grow unabated. In the last quarter, the video streaming market leader gained a good eight million customer households. There were also significant increases in sales and profits – and Netflix now has more money to invest in new films and series.
Netflix now has around 277.7 million customer households worldwide. Since last year, the service has been cracking down on password sharing. This is also driving growth in user numbers.
Many previous free riders got their own subscription instead of turning their backs on Netflix. In the last quarter, a new season of the series “Bridgerton” and films such as “Atlas” and “Hit Man” kept customers on board.
Sales and profits increase
Sales rose by around 17 percent year-on-year to $9.6 billion (€8.77 billion) in the last quarter, as Netflix announced after the US stock market closed. The bottom line was that profits rose from $1.49 billion to just under $2.15 billion.
Only in its revenue forecast for the current quarter did Netflix slightly miss analysts’ expectations. At the same time, the streaming leader has already restricted the growth in the number of customers to be lower than in the same quarter last year, as the crackdown on free riders had a strong impact at that time.
Shares temporarily lose around two percent
Investors reacted sensitively: The share temporarily lost around two percent in after-hours trading. Netflix is now somewhat more optimistic for the entire year, with a sales increase of between 14 and 15 percent. Previously, 13 to 15 percent had been targeted.
Netflix is profitable while competitors like Disney and Paramount are struggling to get their streaming services out of the red. The market leader is aware of its strength and has clearly rejected bundled offers with other services that rivals resort to: It is already a popular address for television entertainment on its own.
Source: Stern
