Netflix Adds 2.4 Million Subscribers, Reversing a Decline (Published 2022) (2024)

Netflix said Tuesday that it added more than 2.4 million subscribers in the third quarter — mainly from outside the United States — snapping a streak of customer losses this year that spurred unease among investors and questions about how much more the streaming business could grow.

The streaming giant said it now has 223 million subscribers worldwide, after beating its earlier forecast of about one million additions for the quarter. Netflix lost 200,000 subscribers in the first quarter, and nearly one million in the second.

“After a challenging first half, we believe we’re on a path to re-accelerate growth,” Netflix said in its quarterly letter to shareholders. “The key is pleasing members.”

Netflix is preparing to introduce advertising on its service on Nov. 3, part of a bid to attract more customers with a lower-cost subscription. The advertising-supported tier, priced at $6.99 a month in the United States, will show subscribers four to five minutes of ads per hour of content they watch.

Netflix generated about $7.9 billion in revenue in the third quarter, a nearly 6 percent increase from the same period last year. The company generated about $1.4 billion in profit, a 3 percent decrease from a year earlier.

Netflix shares jumped more than 10 percent after the results were announced.

Netflix said in its letter to shareholders that it expected to add 4.5 million subscribers in the fourth quarter, a 46 percent decrease from the 8.3 million subscribers it added during the same period last year. Netflix also said it would stop providing guidance to investors on its projected subscriber count beginning next quarter.