Netflix Reverses Subscriber Loss Trend

Netflix reversed customer losses with 2.4 million new subscribers in the third quarter of 2022. The streaming giant forecasts it would pick up 4.5 million customers in the current quarter.

"Thank God we're done with shrinking quarters," said Reed Hastings, Co-CEO of Netflix. He added that the company needs to continue gathering momentum by focusing on content, marketing, and a lower-priced plan with advertising.

Netflix now has 223.1 million subscribers around the world. In the third quarter, the company had revenue of $7.9 billion, a 6% rise compared with the same period in 2021. Their earnings per share were at $3.10.

The streaming giant announced it will no longer provide quarterly guidance for new customers but it will continue to issue forecasts for revenue, operating income, and other categories. "We are increasingly focused on revenue as our primary top-line metric," the company said.

After a sudden decline of 1.2 million subscribers in the first half of the year, the streaming giant is working to kick-start membership growth. One of the announced moves to stimulate growth is the cheaper tier with ads that's starting next month.