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Streaming giant Netflix’s stock fell nearly 9% on lacklustre Q3 revenue expectations.
While its subscriber base jumped by 8% to 5.9 million in Q2, revenue grew by just 2.7% to $8.2 billion, coming in slightly below analysts’ estimates.
Netflix has projected its Q3 revenue to reach $8.5 billion and stated that it was still ‘targeting a full year 2023 operating margin of 18% to 20%’.
Revenue streams
The new wave of subscribers has brought the company’s total count to 238.4 million subscriptions globally, fuelled by the password sharing crackdown in more than a 100 countries that resulted in a flurry of new sign ups.
While the UAE had remained unaffected until now, in its letter to the shareholders, Netflix announced that the company was rolling out paid sharing to ‘almost all the remaining countries’.
The streaming giant further said it has been working to improve its monetisation through initiatives like advertising, which comes with a cheaper subscription tier that has been rolled out in countries like the US.
(Writing by Bindu Rai; editing by Seban Scaria)
