As Netflix kicks off tech earnings into 2023, industry watchers will be on the lookout for signs of recovery.
The streaming giant started recording its in 2022 first subscribers drop in a decade as the heights of the pandemic subsided. At Netflix When it releases results for the final quarter of this year tomorrow (Jan. 19), it will show results for some adjustments it’s made to win back business — most notably the addition of an ad-supported subscription tier for $6.99.
The full impact of the latest offering not felt immediately, as it launched in just 12 markets mid-quarter in November. And while cooling inflation In the US, the strong US dollar and the like probably helped boost numbers domestically cost of living crises may have had the opposite effect on international markets.
Netflix subscribers by the numbers
9%: New customers who signed up for the new ad tier plan in November made it the least popular of all plans, according to analytics firm Antenna. Netflix has denied the accuracy of the data
$3.5 billion: Expected additional revenue from ad-level subscription fees through 2027, on top of $5.5 billion in advertising revenue, according to London-based market research firm Ampere Analysis
$140 billion: Estimated potential advertising revenue from the 12 global markets where Netflix has launched its ad-supported subscription tier
$2.99: The price Netflix is reportedly testing for password sharing. The final price has yet to be announced
4.5 million: Paid subscribers Netflix would expect to see in the fourth quarter of 2022 would be nearly double the 2.4 million it added in the third quarter, but just slightly above it added half of the 8.28 million subscribers in the fourth quarter of 2021. Analysts are divided. at Barclays, Kannan Venkateshwar before Netflix could add just 2.7 million in the fourth quarter. On the other side of the spectrum John Blackledge of Cowen & Co believes that “the ad tier is attractive to price-conscious consumers” and expects the service to add 4.7 million subscribers.
Quotable: The promise of Netflix’s ad tier offering
“Netflix’s ad-supported plan gives the company an opportunity to win back subscribers who are left with high subscription prices. It also gives Netflix the ability to create unique accounts for those who have been content to share passwords with friends and family in the past. It is an exciting time to follow these services with many disruptions and changes.” —Jennifer KentVice President, Research, Parks Associates.
Recorded: All eyes on Netflix stock
Is Netflix facing more stock volatility?
Netflix will provide forecasts for revenue, operating income, operating margin, net income, and earnings per share, but plans to stop reporting subscriber forecasts starting this quarter. The absence of the company’s estimates would make market forecasts less reliable and therefore to more stock volatility go forward.
Nevertheless, the general market sentiment has improved. “Current price is nearing December highs of $330 where buyers are facing some resistance but a better than expected result on Thursday is likely to provide the impetus for another rally higher and a lead towards $400,” according to Market by Capital.com analyst Daniela Hathorn wrote.
Watch next: Netflix content list
🇰🇷 Since more than 60% of its users have watched Korean titles, Netflix has planned its “largest range of Korean movies and series” with 34 titles on the bank. Between 2016 and 2021 the company invested $700 million in Korean content, with an additional $500 million committed in 2021.
🎥 His first experiment with live streaming will be starring in Chris Rock’s comedy special in March Selective outrage
🎮 Netflix will expand its Cloud gaming offeringand it might even bump into it PC Games
One ✈️ thing: Netflix is hiring a flight attendant for up to $385,000
Netflix is hiring a Northern California-based flight attendant for a super-midsize jet. according to the job posting on his website. In addition to regular duties such as pre-flight inspection of all emergency equipment in the cabin, galley and cockpit, and conducting safety and emergency briefings, the candidate must also help with aircraft loading and baggage loading. The candidate must have the “flexibility to handle a varied work schedule, including domestic and international travel that often requires weekend and holiday work days and extended travel time”.
Though Netflix doesn’t offer an exact salary in the job description, it says it’s being paid within the full market range for the role, which typically ranges from $60,000 to a whopping $385,000.
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