Netflix Adds 2.41 Million Net Subscribers, Beats Forecast by over 1 Million

Netflix is on its way back to the top. The company’s third-quarter earnings report brought good news. It showed a beat on both top and bottom lines in addition to adding 2.41 million subscribers. This far surpassed their forecast for 1 million gained subscribers. 

On Tuesday, Netflix shares jumped more than 14%, according to CNBC.

Netflix is not growing as fast as it was years ago. The company actually lost 200,000 and 970,000 subscribers in the first and second quarters. Netflix’s chief financial officer, Spencer Neumann, gave insight during the company’s earnings call on what the third-quarter earnings report means for the company going forward. “We’re still not growing as fast as we’d like. We are building momentum, we are pleased with our progress, but we know we still have a lot more work to do.”

Netflix’s new lower-priced ad-supported tier and the release of popular shows and movies like “Stranger Things” and “Purple Hearts” can be accredited with the company’s third-quarter success.  

Netflix is also cracking down on password-sharing in another effort to increase their number of subscribers. They are testing the new “profile transfer” feature right now which allows users to transfer their profile into a new account. For example, if a relationship ends and you are sharing a Netflix account, this feature allows you to transfer your profile and watch history onto a new account without losing anything … besides the relationship. 

Official plans to monetize accounting sharing will roll out globally in early 2023.