Netflix had promised a million but it was finally some 2.4 million additional subscribers who joined the platform this summer. A victory for the streaming leader who took drastic measures after losing nearly 1.2 million subscribers in the first half. , the co-founder of the Californian group, at a conference for analysts on Tuesday. In all, according to its earnings release, Netflix now has more than 223 million subscribers, thus exploding its record at the end of 2021 (221.8 million), the fruit of two years of pandemic that are ultra-favorable to entertainment platforms. And he’s betting on 227.6 million total subscribers by the end of the year. Reed Hastings called his company’s results and forecast “not fantastic, but reasonable”, adding: this momentum.” For the current quarter, the service can count on the return of popular series such as Emily in Paris or The Crown, but also on its new cheaper subscription with advertising, available in a dozen countries from November. Netflix has long refused this less prestigious solution, but the platform now hopes to attract new consumers and earn additional revenue thanks to this new offer. This formula should “change the game in terms of expansion”, reacted Jamie Lumley, analyst at Third Bridge.“Denying the World““And we think Netflix is going to be able to charge advertisers more than YouTube or traditional TV because the platform has both a diverse and loyal subscriber base and a safe environment for brands“, he commented. Company executives would not comment on rumors of high prices for commercials, but assured that customers were on board. “We are have to turn people away right now,” COO Greg Peters said, noting that Netflix and Microsoft, its advertising technology partner, would have to recruit new employees. to meet demand. The American group, usually reluctant to compare itself to other platforms, welcomed the fact that its users spend more time on its service than those of its competitors, citing figures from Nielsen. According to the research firm, in August and in the United States, Netflix accounts represented 7.6% of time spent watching television, the equivalent of YouTube and well ahead of Amazon Prime Video (2.9% ) and Disney+ (1.9%). The press release states: “Our competitors are investing heavily to gain subscribers and engagement time, but […] we estimate they are all losing money.” Netflix posted a net profit of $1.4 billion for the June-September period, instead of the $966 million expected by the market. Its turnover stood at 7.9 billion dollars. On Wall Street, its title jumped about 14% in electronic trading after the closing of the New York Stock Exchange. “New reality““By directly recognizing [l’importance, ndlr] competition and using advertising, Netflix is adapting to the new reality of the streaming industry“, considers Ross Benes, analyst at Insider Intelligence.In the spring, after the announcement of its first loss of subscribers for ten years, the platform had taken various measures to reverse the trend, in addition to its decision on advertising. The group plans in particular to tighten the screw at the beginning of next year on the side of the sharing of identifiers and passwords, which allow many people to access the content of the platform without paying. Netflix has carried out tests in South American countries: Account holders paid less than $3 per month to add up to two people. After feedback, “we are moving towards this approach which seems balanced to us”, indicated Greg Peters. Preventing the unbridled sharing of passwords “has enormous revenue potential,” noted Jamie Lumley, before detailing: “However, our experts are skeptical about the chances of success, both from a technical point of view than reluctant users, which was observed during testing.”As a first step towards the new system, Netflix on Monday introduced a new tool so that users who share an account can transfer their profile (along with their preferences and their history) when they subscribe to their own subscription.
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