Netflix posted sharply higher third-quarter profits on Tuesday thanks to a stronger title list, including “Squid Game,” South Korea’s dystopian survival drama which the company says has become its biggest TV show in the world. all the time.
The company has ramped up production, rebounding from delays caused by the pandemic in the first half of the year. It is also looking beyond movies and television and said it plans to fund “new growth opportunities” such as video games, which are being tested in certain markets.
“This initiative is still in its early stages and, like other content categories we have grown into, we plan to try different types of games, learn from our members and improve our library. games, âthe company said.
And faced with the saturation of the US market, Netflix is ââfocusing on growing its number of international subscribers. For example, it launched a free mobile plan in Kenya, in the hope that it will inspire more people in the country to purchase paid subscriptions.
In total, Netflix said its subscriber base grew 9% from the previous year, to 213.6 million, beating its own projections.
Netflix earned $ 1.45 billion, or $ 3.19 per share, in the last quarter. That’s up from $ 789.9 million, or $ 1.79 per share, a year earlier.
Revenue increased 16% to $ 7.48 billion from $ 6.44 billion.
Analysts on average expected earnings of $ 2.56 per share on revenue of $ 7.48 billion, according to a FactSet survey.
Shares of the Los Gatos, Calif., Based company fell about 1% in after-hours trading.
Netflix also said on Tuesday that later this year it will change the way it reports its audience metrics. Instead of the number of accounts viewing its titles, it will report the number of hours viewed. Netflix said this was a “slightly better indicator of the overall success of our titles and member satisfaction.”
âIt also aligns with how external services measure TV viewing and assign proper credit to replay,â Netflix said.
For the current quarter, Netflix said it plans to add 8.5 million net subscribers.
The company made no mention in its earnings press release or in its appeal for fallout from a recent Dave Chapelle special, which premiered earlier this month after the end of the third quarter.
Netflix said on Friday it fired an employee for disclosing confidential financial information about what he paid for Chappelle’s comedy special “The Closer,” which employees and advocacy groups condemned as transphobic and harmful to transgender people.
The employee, who has not been named, shared “confidential and commercially sensitive information outside the company,” according to a Netflix statement.
Media watchdog group GLAAD said the “anti-LGBTQ content” violated Netflix’s policy of rejecting programs that incite hatred or violence.
However, Netflix co-CEO Ted Sarandos told managers in an internal memo that the show does not cross “the hate line” and will remain on the streaming service.
Transgender employees and their allies plan to hold a walkout on Wednesday in protest.
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