Netflix has reversed its subscriber losses, adding 2.4 million households in the third quarter of 2022 after a challenging first half. The streaming giant attributed the rebound to hit shows like Stranger Things and Monster: The Jeffrey Dahmer Story, which drew viewers back to the platform.
The company reported a total of over 223 million subscribers globally, with growth driven primarily by the Asia-Pacific region. In a letter to investors, Netflix expressed confidence in its path to reaccelerating growth, despite facing fierce competition from rivals such as YouTube, Amazon Prime, and Disney+.
Netflix is rolling out several changes to restore its fortunes, including a cheaper ad-supported tier launching next month and a crackdown on password sharing, which will be implemented more broadly in early 2023. The company also introduced a profile transfer tool to allow users to move their viewing histories and preferences to new accounts.
Analysts remain cautious about Netflix's growth potential, particularly in core markets like the US, where subscriber growth has plateaued for many streaming services. However, Netflix currently accounts for 8% of all video viewing time in the UK and 7.6% in the US, ahead of most competitors.
Despite price hikes in key markets and rising living costs, Netflix shares jumped over 10% in after-hours trading following the announcement. The company expects to continue adding subscribers in the coming months as it adapts its business model.
