As it prepares to debut a new streaming service with advertising, Netflix Inc. reversed customer losses that had been hurting its stock this year and projected higher growth in the future in order to reassure Wall Street.
Shares of Netflix rose 14% in after-hours trading, in part due to the streaming juggernaut’s forecast that it will add 4.5 million new members in the fourth quarter. The company’s stock, which was a favourite of investors during its years of enormous success, had dropped by almost 60% this year before the quarterly release.
‘Thank God we’re done with shrinking quarters,’ said Co-CEO Reed Hastings, adding the company needs to continue gathering momentum by focusing on content, marketing and a lower-priced plan with advertising.
Between July and September, Netflix added 2.4 million new subscribers, more than twice what Wall Street had predicted.
Both the serial killer series ‘Dahmer – Monster: The Jeffrey Dahmer Story’ and the fourth season of the sci-fi series ‘Stranger Things’ were released by Netflix during the quarter. The latter turned into one of Netflix’s all-time most watched shows.
After a sharp decrease in the first half of the year, when the company’s subscriber base fell by 1.2 million as a result of a shaky global economy and increasing competition for online content consumers, the streaming platform is attempting to restart membership growth. There are currently 223.1 million Netflix subscribers worldwide.