Netflix knocks Disney+ off perch after summertime subscriber bounce back

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Netflix Knocks Disney+ Off Perch After Summertime Subscriber Bounce Back
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By Michael Liedtke, AP Technology Writer

Netflix has reversed its recent subscriber losses with a summertime gain – ahead of its launch of a cheaper version of the video streaming service which will include ads for the first time.

It picked up 2.4 million subscribers during the July-September period, the US firm said on Tuesday, marking a comeback from a loss of 1.2 million customers during the first half of the year amid stiffer competition and soaring inflation which is squeezing household budgets.

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Netflix now boasts 223 million subscribers, enabling the company to at least temporarily reclaim the mantle as the world’s largest video streaming service.


 

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Disney+ eclipsed Netflix in August when it reported its service had 221 million subscribers, a number that will be updated on November 8 when Disney is scheduled to report its summertime results.

“After a challenging first half, we believe we’re on a path to reaccelerate growth,” Netflix predicted in a shareholder letter accompanying the third-quarter results.

The surge in subscribers also helped Netflix earn 1.4 billion US dollars (£1.24 billion), or 3.10 dollars (£2.74) per share, a 4% dip from the same time last year.

Revenue climbed 6% from last year to 7.93 billion dollars (£7 billion).

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The subscriber gains, earnings per share and revenue all topped analyst projections compiled by FactSet.

Netflix’s shares surged more than 14% after the latest numbers came out.

Even so, the stock has still lost more than half its value so far this year, reflecting worries that Netflix’s best days have past.

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