Netflix Adds 5.9M Subscribers In Q2, More Than Doubling Expectations
Netflix’s New Pay-To-Share Password Setup: “We’re Seeing That It’s Working,” Co-CEO Greg Peters Says In Q2 Earnings Interview https://t.co/BtgxBP3eDE pic.twitter.com/OyljKC8s4s
- Deadline Hollywood (@DEADLINE) July 19, 2023
It seems that the password sharing crackdown is working out for Netflix.
Analysts had projected the streamer gaining 1.769 million new subscribers in Q2. Netflix however smashed Wall Street’s expectations by instead rising to 238.39 million global subscribers in Q2 compared with its 232.5 million total in Q1. That growth marks an 8% year-over-year increase in subs.
Paid memberships rose by 1.17 million in the U.S. and Canada during the most recent quarter; by 2.43 million throughout Europe, the Middle East and Africa; by 1.2 million in Latin America; and by 1.1 million in the Asia-Pacific region. The “cancel reaction was low” in the U.S. and in many other countries, the company wrote in the shareholder letter.
Netflix also confirmed it is eliminating its Basic plan, its cheapest streaming plan without ads, in the U.S. and U.K. in an attempt to boost customers on the ad-supported Standard With Ads, which the company first launched last November.
Netflix said it doesn't plan on raising it's sub prices for at least a year.
Netflix co-CEO Ted Sarandos addressed SAG-AFTRA and the WGA’s historic double strike. “Let me start by making something absolutely clear: This strike is not an outcome that we wanted,” Sarandos said during Netflix’s pre-recorded Q2 earnings interview. “We make deals all the time. We are constantly at the table negotiating with writers with directors with actors and producers with everyone across the industry. And we very much hoped to reach an agreement by now. So I also want to say, if I may, on a personal level, I was raised in a union household. My dad was a member of IBEW Local 640. He was a union electrician. And I remember his local because that union was very much a part of our lives when I was growing up. And I also remember on more than one occasion my dad being out on strike. And I remember that because it takes an enormous toll on your family, financially and emotionally.”
“You should know that nobody here, nobody within the AMPTP, and I’m sure nobody at SAG or nobody at the WGA took any of this lightly,” Sarandos said. “But we’ve got a lot of work to do there. There are a handful of complicated issues. We’re super-committed to getting to an agreement as soon as possible, one that is equitable, and one that enables the industry and everybody in it to move forward into the future.” Sure, Jan.
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