Shares in Netflix jumped after announcing it had added 2.41 million subscribers, more than double its forecasts.
Netflix closed the September quarter with 223.1 million total subscribers, a 4.5% jump following two quarters of declines.
A letter to shareholders: "After a challenging first half, we believe we’re on a path to reaccelerate growth. The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us."
Netflix doesn't expect immediate revenue benefits from its launch next month of an advertising-supported subscription tier.
"While we’re very optimistic about our new advertising business, we don’t expect a material contribution in Q4’22 as we’re launching our Basic with Ads plan intra-quarter and anticipate growing our membership in that plan gradually over time," the company told shareholders.
"Our aim is to give our prospective new members more choice - not switch members off their current plans. Members who don’t want to change will remain on their current plan, without ads, at the current price."
Netflix September quarter 2022:
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