Netflix Subscribers Up ‘The Calm Before The Storm’ Say Analysts
Netflix who have moved to jack up their premium packages in Australia has bounced back from a disastrous second quarter.
The US streaming giant who is set to face new intense competition on November 19th when Disney + launches followed by Apple+ has added 6.8 million subscribers while turning over $5.2 billion in revenue over the past three months.
Last year they delivered 6 million subscribers and $4 billion in revenue during the same period last year.
The company now has more than 158 million subscribers worldwide.
The increased numbers are not as much as Netflix may have hoped for with the Company refusing to break out their Australian market numbers.
New content appears to have been the motivation for the subscriber growth with an affluence of original content, including Stranger Things’ third season, which saw 64 million accounts watch the newest season in the first four weeks, according to the company.
Netflix recently signed co-creators Matt and Ross Duffer to an overall deal with the streaming service, which will see them produce more TV shows and films for Netflix.
Following today’s earnings, Netflix’s stock jumped back up, showing a sign of confidence from Wall Street. Netflix’s stock had dropped around 23 percent since its second quarter earnings in July, which marked the first time the company had lower subscriber growth since launching its streaming service in 2011.
This is the final calm before the storm for Netflix.
The next time Netflix reports earnings, there will be two major new entrants in the streaming market: Disney and Apple.
Some analysts are concerned that Netflix could see a dip in streaming subscribers, its core business, as people test out new services, Disney+ and Apple TV Plus. Other analysts are less concerned, citing Netflix as the dominant player in streaming right now.
“In this environment the stock looks vulnerable and I question its upside potential when Netflix will soon face significant, real competition from a variety of media companies all launching their own streaming services at a substantial discount to the fees Netflix is charging,” Haris Anwar, senior analyst at Investing.com, told The Verge ahead of Netflix’s earnings.