Streaming service Netflix reported for the third quarter of 2021, which ended 30 September. Comparing with the previous year:
- revenue increased by 16%, up to $7.5 billion;
- operating profit increased by 33%, up to 1.8 billion;
- net profit increased by 83%, up to 1.4 billion.
More subscribers, than expected
In the third quarter, the number of paid Netflix subscribers increased by 4.4 million, to 213.6 million. This is more than 3.5 million, which the company expected. Half of the new subscribers are from Asia Pacific, 2,2 million.
The average subscription price has increased by 9%, and the average revenue per subscriber is on 7%.
Netflix predicts, in the next quarter, revenue will grow by 16%, up to $7.7 billion. The number of subscribers will increase by 8.5 million, like a year ago: in winter, people spend more time at home and subscribe more often. The company is counting on slowing the spread of the coronavirus and plans to shoot more original content in 2022..
Now the games
Netflix announced the test launch of games in several countries. Games included in the subscription, they will not be advertising and in-game purchases. The company wants to keep users on its platform longer, after all, the service competes for the attention of consumers with social networks and video games. So, activity on the Netflix platform increased by 14% during a Facebook crash 4 October.
Another reason to diversify content with games is the stagnation of the number of subscribers in the US and Canada.. Over the past six months, the number of Netflix users in these countries has fallen by 360 thousand, up to 74 million. There are concerns, that it's a ceiling.
Two out of three watched Squid Game
Separately, the company noted the success of the South Korean series Squid Game - "Squid Games" - which it released. 17 September. In the first month, 142 million Netflix users, or 67%, watched at least two minutes of the series. Of these, about 90% watched at least one episode. The production of "The Game of Squid" cost the service only $ 21 million. The income can be up to 900 million, as calculated by the company itself.
Trend for export of production
Making movies and TV shows abroad is cheaper. The salary of local actors is less, and union rules are not as strict, like in Hollywood. Also, some countries want to attract more tourists, therefore, they make tax and other discounts to American sites.
Probably, Netflix's South Korean Success Boosts Other Studios. So, last week Disney announced the start of production 27 new films and TV series in the Asia-Pacific region. You can read more about the prospects of foreign filming and the battle between Netflix and Disney for the Asian actor in our news collection.
Promotions
After the report, Netflix shares fell by 1,4%, to 630 $. The popularity of the "Game of squid" investors played earlier: for a month since the release of the company's securities have grown by 11%. Index S&P 500 added over the same period 3,7%.
