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Netflix earnings show strength amid media chaos

LOS ANGELES, CALIFORNIA – JUNE 12: Netflix CEO Ted Sarandos attends Netflix’s FYSEE event for “Squid Game” at Raleigh Studios Hollywood on June 12, 2022 in Los Angeles, California. (Photo by Charlie Gale/Getty Images for Netflix)

Charlie Gale | Getty Images Entertainment | Getty Images

Main road from NetflixThe second quarter earnings business is … good.

it’s fine. The core business of a major media and entertainment company is just fine.

Netflix added 5.9 million subscribers in the quarter, a sign that two of its key 2023 initiatives — cracking down on password sharing and launching a cheaper $6.99 per month ad tier — are bringing in new subscribers. Netflix added 1.2 million subscribers in the United States and Canada in the quarter — its biggest regional quarterly gain since 2021.

This is not the story of the rest of the media industry. Disney And Warner Bros. Discovery It has spent the year cutting content from its streaming services to avoid paying arrears and save on licensing fees. Both companies have laid off thousands of employees over the past 12 months to boost free cash flow. Paramount Global And ComcastBoth of NBCUniversal said 2023 would be the biggest annual loss ever for their streaming business.

Meanwhile, Netflix raised its free cash flow estimate for the year to $5 billion. Previously, the company had estimated it would have $3.5 billion, but actor and writer strikes would cut into content spending. That means Netflix will have more cash on hand than previously expected.

In the next quarter, Netflix’s forecast subscriber benefits will be about 6 million again. The company said revenue will accelerate in the second half of the year as it sees the “full benefits” of its password-sharing crackdown and steady growth in its ad-supported plan.

Back on track


Source by [CNBC News]



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