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Netflix gained 7.6 million paid subscribers, whilst Wall Street expected a modest 4.5 million new subs
This is the first real indication of how Netflix’s ad tier is affecting the business
Content was crisp: Harry and Meghan, Wednesday and Glass Onion all proved a hit
Founder, Reed Hastings, is stepping down as co-CEO, as Netflix looks ahead
Netflix ad-vance its subscribers
When Netflix announced ads, the world went crazy. Surely no ads is one of the main benefits the streaming giant has over traditional T.V?
Well, it seems that consumers like choice, as they always have done. During the company’s pre recorded earnings call, Netflix said it has not seen a significant number of people switch plans - those who subscribe to its premium tier and are rarely bumping down to the cheaper, ad-supported model.
It's an interesting revelation as this is the first earnings results we've seen with the new ad tier in place. Unfortunately, Netflix didn't disclose what portion of the new subscriptions are from users who have opted for this service. Your guess is as good as ours, folks.
Royal drama and comedies led the way
Unless you've been living under a rock, you'll have heard about Harry and Meghan's latest documentary. Whilst it's not as graphic as some parts in Harry's book, (I'll ‘spare’ you the vivid details on that one), it did have viewers gripped as it shot up the ranks to become Netflix's second most popular documentary series.
If I said Daniel Craig and master detective, you'd probably think stunning Aston Martins, expensive watches and Martinis - shaken, not stirred. But nope, this time it's all about Benoit Blanc, as viewers went mad for Glass Onion: A Knives Out Mystery.
Wednesday, a spin-off from the ever so popular Addams Family, also proved a smashed hit. Both the show itself and actress, Jenna Ortega, received positive reviews all round.
Overall? Netflix still knows what we want.
The battle of Hastings is over
Netflix also disclosed that co-founder and co-CEO, Reed Hastings, is stepping down and moving into an executive chairman role. Greg Peters, the company’s chief operating officer, has been promoted as the new co-CEO alongside Ted Sarandos.
A celebration may be in order for Greg Peters, but he will have much to tackle heading into the rest of the year - from high levels of expenses and password sharing, to finding the next Stranger Things.
Netflix's key earnings results
✅ Global paid net subscribers - 7.6 million subscribers, above the forecasted 4.5 million
❌ Revenue- $7.85 billion against the projected $8.1 billion
❌ EPS - 12 cents vs the estimated 45 cents per share, though this is largely down to euro-denominated debt - its margins of 7% still beat Wall Street’s expectations
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