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Netflix gave Vestact clients a great start to earnings season last night. They added 2.4 million subscribers in the previous quarter, including 100 000 in the highly competitive North American market. These additions more than make up for the lost subscribers at the start of the year. Importantly, management forecast the addition of 4.5 million subscribers for the final quarter of the year.
In the results presentation, Netflix showed Google search trends for their Dahmer show compared to the highly-publicised Ring of Power and House of the Dragon. Dahmer had significantly more searches than the other two shows. They believe that launching a show in one go allows for binge-watching and builds momentum and fervour among friends. The other two shows had episodes released weekly, making it hard to maintain enthusiasm levels.
With all the streaming options around, companies are fighting hard to be indispensable to a household. In the US, subscribers spend 2.6 and 1.4 times more time watching Netflix than Amazon Prime and Disney+, respectively. If consumer budgets start to get tight, this means other streaming services will get the chop first.
Netflix is still very far from its all-time highs, but this bounce will help. Onwards and upwards.
