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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, October 19, 2022

Netflix Moves Beyond Membership

Netflix forecast year-on-year revenue growth of 9% (in constant currency terms) for the fourth quarter of 2022, as it anticipates that growth in paid memberships will fall to just 2.6% from about 9% a year ago.  

In the third quarter of 2022, Netflix's revenue rose 13% to 7.9 billion US dollars, excluding the impact of foreign exchange movements. 

Netflix said: "As discussed in previous letters, we are increasingly focused on revenue as our primary top line metric. This will become particularly important heading into 2023 as we develop new revenue streams like advertising and paid sharing, where membership is just one component of our revenue growth."

Netflix is also trying to expand its year-old games proposition: "We now have 35 games on service (all included in every Netflix subscription without in-game ads or in-app purchases) and we’re seeing some encouraging signs of gameplay leading to higher retention. With 55 more games in development, including more games based on Netflix IP, we’re focused in the next few years on creating hit games that will take our game initiative to the next level. More generally, we see a big opportunity around content that crosses between TV or film and games." Source: Netflix statement

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