Reuters
[Source: Reuters]
Netflix opens new tab said on Thursday it added more than 8 million subscribers in its second quarter as the streaming service benefited from a password-sharing crackdown and such titles as “Bridgeton,” “Baby Reindeer” and “The Roast of Tom Brady.”
While the subscriber gains topped analyst predictions, Netflix also cautioned that third-quarter subscriber gains would be lower than the comparable period in 2023 when the password-sharing crackdown had just started.
Netflix shares fell 4% in after-hours trading to $617.32.
At the end of June, the new sign-ups brought the total number of global Netflix subscribers to more than 277 million.
The company reported diluted per-share earnings of $4.88, compared with consensus forecasts of $4.74 a share, according to LSEG. Revenue for the quarter reached $9.56 billion, in line with estimates.
Wall Street investors have been monitoring the growth of Netflix’s ad-supported tier, which the company’s crackdown on password-sharing has fueled, pricing increases for ad-free tiers and new consumer bundles, such as Comcast’s (CMCSA.O), opens a new tab “Stream Saver” bundle, which combines Netflix with Peacock and Apple TV+.
Netflix said its ad tier membership grew 34% from the prior quarter, but it did not say how many subscribers chose that option.
The company said it expects third-quarter revenue growth of 14%, compared with a year ago.
Three years into its videogame initiative, Netflix said it planned to release a multiplayer game based on “Squid Game” later this year when it debuts Season Two of the dystopian Korean series. It also plans games tied to “Emily in Paris” and “Selling Sunset.”
