You can only stay on top for so long.
Netflix, the premier destination of the streaming era, learned that lesson earlier this year. The streamer didn’t lose its throne, per se, but the company endured a brutal two quarters of declining subscriber growth and shrinking stock prices.
Blame the Biden economy, the crush of new competitors (Disney+, HBO Max, Peacock) or just the natural order of economic gravity.
Something had to be done.
So Team Netflix tightened its belt and, more importantly, took a stand for creative freedom.
Now, Netflix is seeing the results of its new strategy. So far, so good, but the numbers suggest its brand reappraisal isn’t the only reason to cheer.
The company announced it added 2.41 million subscribers in the third quarter, far more than its modest 1 million projection. That sent shares soaring by 14 percent today.
The growth didn’t come from a crush of western subscribers, though. Just 10K were attributed to U.S. /Canada customers, according to CNBC. (It’s possible the brand makeover kept some subscribers from fleeing, of course.)
The vast majority of new Netflix clients came from the Asia/Pacific corridor.
The future still looks brighter for the platform. The company stopped its subscriber loss, at least for now. Plus, Netflix’s pro-freedom stance may slowly reverse its far-Left image in many people’s minds. That may give it an edge against hard-charging Disney+, featuring shows which actively antagonize its subscribers.
The company also plans an aggressive attack on those who illegally share passwords to access its content in 2023.
The year began badly for Netflix, but its position seems to be stabilizing. It lost subscribers in the second quarter, too, but not as many as some feared. Now, it’s back in the plus department.
All of the above should help Netflix stay on top of the streaming heap. at least for the time being.