Netflix recently claimed to its shareholders that it is the only profitable streaming company currently in operation.
In its Q3 2022 earnings call, Netflix said it believed its competitors, primarily Prime Video and Disney+, are "investing heavily to drive subscribers and engagement" yet still failing to make money. The company added that based on its estimates, it believes all competitors had combined 2022 operating losses of over $10 billion-- a stark contrast to Netflix's reported $5 to $6 billion annual operating profit. It also said that the service had a higher percentage of market share than any other streamer in the vital UK and US markets and was on a "path to reaccelerate growth" after a period of stagnation.
Netflix's viewership figures have been buoyed over recent months thanks to the popularity of series like Stranger Things Season 4 and exclusive films like The Gray Man. The streamer has recently seen high interest in Ryan Murphy's biographical drama Dahmer, which charts the life and crimes of notorious serial killer Jeffrey Dahmer. Netflix has also invested more in the growing Asian streaming market, with shows like Extraordinary Attorney Woo regularly topping charts in countries like South Korea and Japan.
Dahmer recently became the streamer's second most-watched English language series and has surpassed other big hitters like HBO's House of the Dragon and Prime Video's The Rings of Power in terms of online engagement. The conversation around the series was only enhanced by several controversies, such as the families of one of Dahmer's victims protesting their on-screen depiction and a crew member claiming to have developed PTSD from poor treatment during filming. Dahmer was recently dethroned from Netflix's top spot by home invasion horror The Watcher, another Ryan Murphy production that has seen strong viewer interest in the run-up to Halloween.
Despite its numerous well-received outputs, Netflix has still struggled to maintain its subscriber numbers as the cost of living crisis around the world worsens. The streamer has approximately 1 million subscribers in the UK as consumers start to feel the pressure of rising prices and seek to cut unnecessary expenses.
In a bid to keep its more financially-conscious viewers on board, Netflix's ad-supported tier will roll out in November at a lower price than its regular, two-screen plan. The so-called Netflix Basic With Ads will offer viewers a lower monthly cost of $6.99 in exchange for 15 to 30-second ads during movies and TV shows, as well as limitations on resolution and number of screens.
Source: Netflix