Netflix Reverses Loss To Add 2.4 Million Subscribers; Asia Pacific Biggest Growth Driver

Streaming giant Netflix has reversed subscriber loss and has added around 2.4 million subscribers globally.

The streaming giant reported $7.93 billion in revenue in the third quarter of 2022.

Streaming giant Netflix has reversed subscriber loss and has added around 2.4 million subscribers globally. The subscriber growth for Netflix came from outside of the US, from the Asia Pacific region, which included India was the biggest growth driver for the streaming company. The company added 1.4 million paid users from the Asia Pacific region. 

Asia-Pacific is the smallest region for Netflix after the US and Canada, Europe, the Middle East and Africa and Latin America.

"Thank God we're done with shrinking quarters," Reed Hastings, co-CEO of Netflix, said in a statement during the company's earnings conference call.

The streaming giant reported $7.93 billion in revenue in the third quarter (Q3) of 2022 and its operating income totalled $1.5 billion. For the next quarter, Netflix is expecting revenue of $7.8 billion with the sequential decline entirely due to the continued strengthening of the US dollar against other currencies.

"It's been a huge challenge to build a lifetime of entertainment in just ten years in multiple languages and across so many different genres - series, films, animation, stand-up and non-fiction," the streaming company said.

"Given everything we've learned, we're confident we can deliver even more member value per content investment dollar over time," Netflix added.

In a bid to attract more users, streaming giant Netflix which has almost 223 million subscribers globally has recently said it is introducing the long-awaited ad-supported streaming plan at a price of almost $7 per month in November. Netflix had indicated that it would roll out cheaper advertising-supporter tiers after it lost a significant number of subscribers in the first half of the year.

Netflix is calling its new ad-supported plan Basic with Ads, and it is rolling out next month, specifically on November 1 in countries including Canada and on November 3, in the US and the UK. To compare, the upcoming ad-supported plan's cost is $6.99 for the “Basic with Ads” plan and it costs $3 less than Netflix’s lowest-priced tier that does not have advertisements.

"In short, Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between. Starting in November, signing up will be easy — visit Netflix.com, and register with your email, date of birth, and gender to get started," the company said in a statement.