Netflix gained fewer new subscribers from April to June compared to the last five quarters.
Netflix added about 4.82 million new subscribers in this period, which is the lowest since early 2023 and about half of the 9.3 million new subscribers from the previous quarter.
However, Netflix’s cheaper plan with ads has been very successful, bringing in a lot more money from ads. Their ad revenue is expected to more than double compared to previous figures.
Overall, their total revenue likely increased by 16.4% to $9.53 billion, the fastest growth since mid-2021.
Popular shows like Bridgerton and Baby Reindeer were among the most-watched in the second quarter.
Investors are eagerly waiting for Netflix’s second-quarter results to see how well the ad-supported plan and other new strategies are doing.
In May, Netflix said their ad-supported plan had 40 million monthly users worldwide, up from 23 million in January, making up 40% of all new sign-ups. This success has impressed investors, with Netflix’s stock rising nearly 35% this year.
After investing a lot in original shows, Netflix is also getting a lot of views from popular shows they got from other networks, like “NCIS” and “Grey’s Anatomy.” In fact, 18 of the top 20 streamed titles were shows acquired from other networks.
Netflix has also announced new partnerships. Comcast is offering Netflix with its Peacock service and Apple TV+ to its Xfinity customers. It is adding more live events to attract advertisers.
Netflix will announce more live events to increase viewing time for its ad-supported plan, especially since there is a general decrease in the production of scripted content.
In May, Netflix announced plans to build its own ad technology platform to give advertisers better ways to buy and measure ads. They initially relied on Microsoft for their ad-supported plan.
Even though Netflix is making progress, significant revenue from ads is expected by 2025.
