economy and politics

Netflix bills more and incorporates 5.9 million users while the strike in Hollywood continues

SAG-AFTRA actors attack Hollywood studios as they join the Writers Guild of America (WGA) outside the Netflix offices in Los Angeles, California, USA, on July 14, 2023.

First modification:

The streaming giant’s revenue grew in the second quarter of 2023, although it deviated from Wall Street estimates, while tens of thousands of Hollywood actors remain on strike, demanding better contract conditions.

“Let me start by making one thing absolutely clear: This strike is not the outcome we wanted.”

With this phrase, Ted Sarandos, co-CEO of Netflix, responded this Wednesday in a question and answer session to investors eager to know how the double strike in Hollywood will impact the company valued at more than 200,000 million on Wall Street.

Sarandos said he grew up in a unionized household and remembered his father’s struggles going on strike, saying he hoped the labor tensions holding the global entertainment industry paralyzed would be resolved soon.

A letter sent by the company to its shareholders included a single mention of the strike, to indicate that the “updated forecasts” after the strikes only reveal “minor spending on content.”

Strong results, but disappointing for Wall Street

The video streaming pioneer disappointed the market three to reveal that its second-quarter revenue of $8.2 billion missed analyst estimates, nor did its profit of about $1.5 billion.

SAG-AFTRA actors attack Hollywood studios as they join the Writers Guild of America (WGA) outside the Netflix offices in Los Angeles, California, USA, on July 14, 2023.
SAG-AFTRA actors attack Hollywood studios as they join the Writers Guild of America (WGA) outside the Netflix offices in Los Angeles, California, USA, on July 14, 2023. REUTERS – MIKE BLAKE

The revenue figure, coupled with a weaker-than-expected third-quarter forecast, dwarfed an unexpected addition of 5.9 million new customers between April and June and earnings that easily beat predictions.

In this way, Netflix reached 238.4 million subscribers during the second quarter of 2023, 8% more than in the same period last year, thanks to the account control policies shared by its users.

This is the largest number of subscribers in the company’s history, as a result of its strategy to eradicate the illegal exchange of passwords that it began to execute in May in countries like the United States, where users who live outside the family home must now join as ‘additional members’ at a surcharge or pay your own subscription.

Netflix shares have gained 62% this year.

With Reuters and EFE

Source link