Netflix added 2.4 million new subscribers in the third quarter, according to the latest quarterly report. The outcome surpassed expectations, and the company aims to grow its base by about one million more customers in the coming period.
The streaming giant reported a net benefit of 1,398 million dollars for the quarter. This positive result marks a reversal of a recent downturn, where subscriber losses had weighed on the stock during a period of volatility.
Following the earnings release, Netflix shares rose as much as 10 percent after trading in New York, reflecting renewed investor optimism about the company’s trajectory.
Earlier this month, Netflix announced a new monthly subscription option that includes advertising. This plan is priced lower to appeal to price-conscious viewers and helps retain a global audience that already exceeds 227 million subscribers.
Developing the pricing strategy remains a central objective, the company told investors. The new offer will launch in 12 countries this November, which together account for a large share of the global market.
Netflix expects to lift revenue and profits by signing up new subscribers and by encouraging account sharing to shift users to cheaper individual plans.
a) It was proposed that the subscriber base would grow by 4.5 million in the latter months of the year.
For the third quarter, Netflix posted 1,398 million in revenue and 1,449 million in operating income, figures that are slightly below the same period last year.
Overall quarterly turnover held steady at 7,926 million and is projected to reach 7,776 million in the next quarter.
In the earnings letter, leadership emphasized a commitment to regaining momentum after a challenging first half. The focus is on pleasing members and competing effectively every day. When popular TV shows and films attract viewers, the company believes word of mouth will help bring in new subscribers and keep existing ones engaged.
Despite missteps, Netflix highlighted a broad catalog of series and movies that appeal to diverse tastes from creators around the world, underscoring the company’s global storytelling appeal.
Advertising and pricing strategy
As signs of a macro slowdown began to appear earlier in the year, Netflix leaders announced plans to adjust cost structures to match growth rates. The company has reduced its workforce by more than 300 employees and has entered into an advertising partnership with Microsoft, with ad-supported plans set to roll out next month.
The strategy also includes converting multi-household accounts to individual subscriptions. To support this, Netflix has begun charging extra for shared access in regions such as Chile, Costa Rica, and Peru. An app feature allows a shared account profile to be moved to a dedicated account while preserving viewing history and recommendations.
With 227 million subscribers, Netflix remains the leading streaming platform worldwide, though the market is increasingly competitive. In comparison, Amazon reports around 200 million video viewers on its e-commerce platform, while Disney operates across Disney+, Hulu, Star, and ESPN+ with more than 220 million subscribers. Apple TV+ serves tens of millions of users. The industry landscape continues to evolve as services compete for attention and budget-conscious viewers.