In April, Netflix’s first-quarter earnings call rocked the industry when it revealed it had lost 200,000 subscribers – its first decline since 2011.
Today’s second-quarter earnings call saw another decline, albeit far less than estimated – 970,000 subscribers. That’s well below their forecasts back in April, which were for a loss of up to 2 million subscribers.
Revenue for the quarter increased 9% to $7.97 billion, while Netflix indicates its third quarter projects a 1 million gain in subscribers in the third quarter.
It also confirmed its ad-supported streaming tier will kick off in early 2023, and its $17 billion spend on content this year is a level it will sit at for the next few years.
Investors cheered the results, sending Netflix shares up 7% in after-hours trading whilst shares of rivals like Disney, Paramount, and Warner Bros. Discovery all closed higher.
Talk of Netflix being a takeover target has swirled in recent months, with an analyst predicting to Yahoo earlier this week the company could be a potential acquisition for Microsoft whom Netflix recently made a recent deal with over advertising.
Source: CNBC
