Media & Entertainment

Netflix adds 2.41M subscribers, soaring past expectations

Comment

Netflix sign atop building
Image Credits: Netflix

Things are looking up for Netflix this quarter. The streamer added 2.41 million subscribers, bringing the total to 223.09 million. Netflix expected a net gain of 1 million subs in the third quarter, so today’s results far exceed its own expectations and analysts’ expectations. The company reported earning $7.93 billion in revenue in Q3 2022, whereas analysts predicted $7.85 billion.

This will be Netflix’s first increase in a while, particularly in its U.S. and Canada subscriber base. The company reported a spike in 104,000 subscribers in the region, making the new total 73.4 million. The last time Netflix experienced subscriber growth in the U.S. and Canada was in Q4 2021.

The company expects 4.5 million paid net adds in Q4 2022.

Netflix experienced two very grim quarters in recent months, losing a total of 1.2 million global subscribers. A significant number of layoffs have also occurred, including the more recent downsizing of its animation department. However, with the addition of its new ad-supported tier coming to the platform in November, the company has potentially opened itself up to new customers looking for a cheaper way to stream.

“The reaction from advertisers so far has been extremely positive, and we believe that more choice, especially for more price-conscious consumers, will translate into meaningful incremental revenue and operating profit over time. That said, it’s still very early days, and since we’re keeping our existing plans ad-free, it will take us time to build up our membership base and the associated ad revenue,” Netflix added.

Netflix revealed last week that the Basic with Ads plan would cost $6.99 per month and include four to five minutes of advertisements an hour for TV shows and movies. The launch will occur one month before rival Disney+’s ad-supported tier, which will cost $7.99 per month.

Netflix undercuts Disney+ with launch of its $7/month ad-supported plan early next month

Today, investors also learned how the company intends to monetize password sharing on the platform. Netflix said that, starting in early 2023, it will charge account members a fee who want to create subaccounts for account borrowers. This “extra members” feature was first tested in Chile, Costa Rica and Peru.

Netflix launched a profile transfer feature yesterday to help account members transition to their own separate accounts without losing personalized recommendations, viewing history and other custom settings.

Netflix launches new ‘Profile Transfer’ feature to help monetize account sharing

Also, the company noted that the one-year anniversary of its gaming launch is approaching. Netflix continues to invest in mobile gaming, despite the recent report that less than 1% of its subscriber base plays its games. Last month, Netflix announced the addition of game handles for subscribers looking to play its exclusive games. Also, the streamer is establishing an internal games studio in Finland.

In breaking news, Netflix is also launching a new studio in California and expanding into cloud gaming.

Netflix to expand into cloud gaming, opens new studio in Southern California

Netflix continues to remain focused on content, investing in big-budget films such as the anticipated “Knives Out” sequel, “Glass Onion: A Knives Out Mystery,” which will have a limited debut in theaters during Thanksgiving weekend before its streaming release on December 23.

Netflix only managed to nab three Primetime Emmys this year, however, its controversial drama series on Jeffrey Dahmer, “Monster,” has a total of 824.2 million viewing hours. The company boasted that the series is among the most watched for this quarter next to “Stranger Things” season 4.

More TechCrunch

Zen Educate, an online marketplace that connects schools with teachers, has raised $37 million in a Series B round of funding. The raise comes amid a growing teacher shortage crisis…

Zen Educate raises $37M and acquires Aquinas Education as it tries to address the teacher shortage

“When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine.”

Scarlett Johansson says that OpenAI approached her to use her voice

A new self-driving truck — manufactured by Volvo and loaded with autonomous vehicle tech developed by Aurora Innovation — could be on public highways as early as this summer.  The…

Aurora and Volvo unveil self-driving truck designed for a driverless future

The European venture capital firm raised its fourth fund as fund as climate tech “comes of age.”

ETF Partners raises €284M for climate startups that will be effective quickly — not 20 years down the road

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft wants to make Windows an AI operating system, launches Copilot+ PCs

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

2 days ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’