Netflix saw solid third-quarter growth, bringing in $7.48 billion in revenue, a 1.3% bump from last quarter. Its net income jumped 83.4% year-over-year to $1.45 billion. It also added 4.4 million users, which was above their forecast of 3.5 million, to reach a total of 213.6 million paid subscribers. Netflix said it held a 6% share of total watching time in the U.S. in September, tied with YouTube for tops among streaming services.
Netflix promised to update how it reports viewership (which is still carefully curated and self-reported by the streaming service). “Later in the year, we will shift to reporting on hours viewed for our titles rather than the number of accounts that choose to watch them,” the company said in its quarterly letter to investors.
Netflix has been developing new lines of business, particularly in gaming. In July they hired former EA and Facebook executive Mike Verdu, who worked on The Sims and Plants vs. Zombies franchises. They also reiterated that “games on Netflix will be included in members’ subscriptions and will not have advertisements or in-app purchases, so gameplay is purely focused on enjoyment versus monetization.”
Netflix noted in its shareholder letter that it was holding cash “to reinvest in our core business and to fund new growth opportunities like gaming, followed by selective acquisitions.” The streamer acquired “OXENFREE” developer Night School Studio in the third quarter and has begun testing game offerings in certain countries.
(All information was provided by Front Office Sports and Yahoo! Finance)
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