18 October 2024
If you are covering Netflix’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“The third quarter is usually a volatile one for Netflix, but these results show the business is firing on all cylinders and has a good lead in to Christmas. The company beat expectations across the board with strong subscriber growth and margins up another 7.2%. We are also seeing each part of the business grow well, with the new advertising model, paid sharing and a less competitive backdrop all contributing to good revenue growth.
“Ultimately it is the content that drives subscriptions and pricing and Netflix is getting this right too and importantly keeping customers happy and wanting more. The upcoming fourth quarter slate, and beyond, is likely to keep this demand up with Squid Game, NFL, Stranger Things, Happy Gilmore and WWE and hitting soon. Meanwhile the overall business shows no signs of slowing down as it continues to find new ways to innovate while competitors flounder. It has high standards and these are being met quite comfortably just now. If Netflix can keep this up and continue to flex its muscles while others struggle, it will keep both customers and investors happy for a long time to come yet.”
