Netflix has gained 2.41 million subscribers in the third quarter, exceeding the internal forecasts and expectations on Wall Street. The company has observed more customers signing up than earlier in the year.
“Thank God. We’re done with shrinking quarters,” Netflix co-chief executive Reed Hastings said during an earnings call. “We’re back to the positivity; we have got to pick up the momentum,” Hastings added.
Netflix COO Greg Peters briefed about the launch of the ‘basic with ads’ subscription plan in the US at $6.99. He said, “The timing is great because we really are at this pivotal moment in the entertainment industry and the evolution of that industry. Now, streaming has surpassed both broadcast and cable for total TV time in the US.”
The company earlier announced a partnership with Microsoft to work on its ad-supported tier. “Teams at both companies will likely need to be bulked up to handle the huge demand by advertisers,” Peters said.
The platform has also introduced a new ‘profile transfer’ feature. Unlike the ad-supported subscription plan, this feature will roll out globally, including in India. Click to know more
According to a Bloomberg report, shares of Netflix rose 16 per cent to $278.94 in extended trading after the results were out. The stock was down 60 per cent this year through the close Tuesday in New York.