Netflix added more than 2.4 million paid subscribers in the third quarter of 2022. This marks a fairly major development for the streaming service, considering its ability to not only increase users, but also retain its existing subscribers, had come under scrutiny in recent months. The latest numbers are even better than Netflix had predicted.
In spite of the number of streaming services that are now in operating, Netflix remains one of the big hitters. That said, the first quarter of this year saw the streaming service lose roughly 200,000 subscribers and this was then followed by a subscriber decline of almost one million in the second quarter. All of which had meant that many were waiting to see how many subscribers Netflix would post for its Q3, 2022.
Netflix has now confirmed that it closed the third quarter of this year with more than 223 million subscribers globally, resulting in an increase of over 2.4 million compared to the second quarter of 2022. Previously, the company had said that it expected to end the third quarter with 221.67 paid subscribers, an increase of only one million subscribers. In the end, Netflix more than doubled that number. The earnings report also revealed that the number of subscribers in the United States and Canada rose to 73.39 million, up from 73.28 million in the second quarter.
Netflix took a moment to explain that, “after a challenging first half” of the year, the company now believes it is back on the growth path. Looking forward, Netflix expects to add somewhere in the region of 4.5 million paid subscribers in the fourth calendar quarter of 2022.
One of the ways it expects to see more new users in the fourth quarter and beyond is through the introduction of the new Basic with ads plan. Unlike the existing Netflix plans, Basic with ads lowers the cost of a subscription down to $6.99 per month through the use of what Netflix says will be 4-5 minutes of ads per hour. The new Basic with ads plan is due to go live in 12 countries, including the United States, in early November.
On the topic of its increased competition within the streaming space, Netflix said it believes that its competitors “are all losing money” this year after “investing heavily to drive subscribers and engagement.” Something Netflix was also keen to point out doesn’t affect its business model, citing more than $5 billion in operating profit in 2022 alone.