Netflix let Wall Street down on Wednesday by reporting second-quarter revenue that fell short of analyst expectations, sending its shares down almost 9% in after-hours trading. The revenue figure, together with a weaker-than-anticipated forecast for revenue in the third quarter, overshadowed the addition of 5.9 million new streaming subscribers from April through June and earnings …
Netflix let Wall Street down on Wednesday by reporting second-quarter revenue that fell short of analyst expectations, sending its shares down almost 9% in after-hours trading. The revenue figure, together with a weaker-than-anticipated forecast for revenue in the third quarter, overshadowed the addition of 5.9 million new streaming subscribers from April through June and earnings that easily topped predictions. Following the results, Netflix shares fell 8.9% to $435. Due to growing streaming competition and the market’s impending saturation in the US, Netflix has been seeking for new revenue streams. The company started asking password borrowers to pay in a nationwide crackdown that went into effect in May after launching a lower tier with advertising last November. The company stated that it anticipated revenue growth to pick up speed in the second half of the year and added that it planned to keep making compelling series and movies, enhance monetization, build its video gaming business, and enhance the user experience.
Tens of thousands of Hollywood actors and writers are on strike, and Netflix is struggling with this issue much like its rivals. Many film and television producers had to stop working as a result of the strike, but observers believe Netflix has an edge due to its global production. In part as a result of cutting back on content production, Netflix increased its projection for free cash flow in 2023 from $3.5 billion to $5 billion. Ted Sarandos, co-CEO of Netflix, expressed his hope that the labour tensions would end soon, noting that he was raised in a union household and remembered how difficult it was when his father went on strike.
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