Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Business

Global ‘Squid Game’ mania lifts Netflix quarter

2021 10 19T203340Z 2 LYNXMPEH9I160 RTROPTP 4 HOLLYWOOD IATSE - Global Banking | Finance

By Lisa Richwine and Eva Mathews

(Reuters) -Netflix Inc’s global sensation “Squid Game” helped lure more new customers than expected, the world’s largest streaming service said on Tuesday as it predicted a packed lineup would further boost signups through the end of the year.

After a sharp slowdown in the first half of 2021, Netflix added 4.38 million subscribers from July through September to reach 213.6 million worldwide. Wall Street analysts had projected 3.86 million additions, according to Refinitiv data.

Netflix enjoyed a subscriber boom last year as COVID-19 kept audiences at home, but growth stalled early this year. At the same time, Walt Disney Co’s Disney+, AT&T Inc’s HBO Max and other competitors bolstered their offerings. Netflix blamed the earlier weakness in part on a thin slate of new programming caused by production shutdowns from the pandemic.

Then, South Korean drama “Squid Game” debuted on Sept. 17 and surprised executives by becoming the streaming service’s most-watched original series in its first month. On Tuesday, Netflix said a “mind-boggling” 142 million households had watched the dark drama about people who compete in a deadly competition to erase financial debt.

The series, made with a relatively small budget, shot to the top of Netflix viewing charts in 94 countries, kick-started sales of track suits and Vans sneakers, and kindled interest in learning Korean https://www.reuters.com/lifestyle/netflix-hit-show-squid-game-spurs-interest-learning-korean-2021-10-11. “Squid Game” merchandise is now on its way to retailers, Netflix said.

The fervor around “Squid Game” also is expected to lift the current quarter. Netflix projected it will pick up 8.5 million new customers by year’s end, ahead of industry forecasts of 8.33 million, as it releases a heavy lineup of new programming. Upcoming debuts include big-budget action flick “Red Notice” and a second season of fantasy drama “The Witcher.”

It also expects a “more normalized” programming slate in 2022 spread throughout the year, “assuming no new COVID waves or unforeseen events,” the company said in a quarterly letter to shareholders.

Shares of Netflix were close to even in after-hours trading at $641 following the earnings report.

OVERSEAS GROWTH

Most new customer pickups in the quarter came from the Asia Pacific market, where Netflix now has 30 million subscribers. Industry experts believe the region may rival the United States and Canada – Netflix’s largest market – in three to five years, said Third Bridge senior analyst Joe McCormack.

Netflix is trying new ways to attract customers overseas, including offering a free plan in Kenya https://www.reuters.com/business/media-telecom/exclusive-netflix-offers-free-plan-kenya-entice-new-subscribers-2021-09-20. It will take one to two years to tell if that tactic leads to more paying subscribers, the company said.

For the quarter that ended in September, diluted earnings-per-share came in at $3.19, beating analyst expectations of $2.57. Revenue rose 16% to $7.5 billion.

Before the earnings report, Netflix shares had risen roughly 22% this year and were trading near record highs, but their gains lag behind the 54% increase in the Nasdaq.

Netflix, which keeps much of its viewership data secret, also said it will release information more frequently and shift its main publicly reported metric to hours viewed, rather than the number of accounts that watched a title for at least 2 minutes. The company noted that it competes with a large set of activities beyond TV including TikTok and Fortnite. When Facebook Inc suffered a global outage in early October, “our engagement saw a 14% increase during this time period,” Netflix said.

Executives did not address worker complaints about a Dave Chappelle comedy special, which the company has previously defended. Some employees say Chappelle made comments that harmful to transgender people, and they plan a walkout on Wednesday.

(Reporting by Eva Mathews in Bengaluru and Lisa Richwine in Los Angeles;Editing by Matthew Lewis and Stephen Coates)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post