California: Netflix reported its second-quarter earnings on Thursday, revealing its leading position in the streaming industry with a notable increase in global subscribers and significant growth in its advertising business.
The streaming giant experienced a 34 percent growth in its ad-supported memberships during the period compared to the same quarter last year. Advertising has become a crucial component for media companies aiming to enhance or achieve profitability in streaming. Netflix’s recent stock performance has benefited from its efforts to attract subscribers to its more affordable, ad-supported tier, along with its measures to curb password sharing.
As per reports, revenue reached approximately 9.6 billion dollars, a 17 percent increase compared to the same period last year, driven primarily by a rise in average paid memberships.
Netflix now projects full-year reported revenue growth of 14 percent to 15 percent, an improvement from its previous guidance of 13 percent to 15 percent.
The company reported a net income of 2.15 billion dollars, or 4.88 dollars per share, up from 1.49 billion dollars, or 3.29 dollars per share, in the second quarter of 2023.
Netflix’s global paid memberships grew by 16.5 percent year over year to 278 million. This update is one of the last instances Netflix will provide quarterly membership numbers or average revenue per user, as the company plans to stop reporting these figures starting in 2025. Netflix stated that it will focus on revenue and operating margin as its primary financial metrics and use engagement (time spent) as the best proxy for customer satisfaction.
FIRST Business Portal addressing the potential of business capability of North East Region.
