Netflix reports strong earnings on ad-supported model and subscriber growth, focusing on high profitability

From CNBC: 2024-07-18 12:00:01

Netflix will report second-quarter earnings, with a focus on its ad-supported business model. Wall Street expects earnings per share at $4.74 and revenue at $9.53 billion. The streaming giant has 274.4 million paid memberships. Netflix’s stock has risen due to subscriber growth on the ad-supported tier and crackdown on password sharing.

The company has added live sports, like NFL games on Christmas Day, to attract more ad dollars. Netflix had 270 million global subscribers in Q1, exceeding expectations. The ad-supported tier boasts 40 million monthly active users. Netflix plans to shift focus to revenue and operating margin, signaling a move towards slower growth but higher profitability.

Analysts note Netflix’s pivot to a high-profit business model. The stock has benefited from its crackdown on password sharing and cheaper tier. The company aims to focus on time spent rather than subscription additions, positioning itself against competitors like YouTube. Additional live event announcements are expected to drive ad-supported content engagement.



Read more at CNBC:: Netflix (NFLX) earnings Q2 2024