SAN FRANCISCO: Netflix has posted a stronger-than-expected second-quarter performance, with profits rising 45% year-over-year. The streaming giant attributed this growth to higher subscription prices and a rapidly expanding advertising business.
Revenue climbed 16% to $11.1 billion for the quarter ending June 30, surpassing both analyst expectations and the company’s own projections. Net profit surged to $3.1 billion, prompting Netflix to raise its full-year revenue forecast to between $44.8 billion and $45.2 billion.
Content remained a key driver, with major hits like the third season of “Squid Game” drawing 122 million views. The company called it “our sixth biggest season of any series in our history.” Other successful titles included “Ginny & Georgia” (53 million views) and “Sirens” (56 million views). The animated film “KPop Demon Hunters” also performed well, reaching 80 million views and topping global music charts with its soundtrack.
Netflix highlighted the continued popularity of Korean content, reinforcing its global strategy. Looking ahead, the company is optimistic about upcoming releases, including the second season of “Wednesday,“ the final season of “Stranger Things,“ and new films from acclaimed directors like Kathryn Bigelow and Guillermo del Toro.
The platform is also expanding into live programming, with plans for marquee boxing matches and NFL games. This diversification aligns with Netflix’s push beyond traditional on-demand entertainment.
Investors have responded positively, with shares rising over 40% year-to-date. The company’s crackdown on password sharing and introduction of ad-supported tiers have boosted profitability. While Netflix no longer discloses subscriber numbers, it continues to focus on engagement metrics.
Advertising remains a key growth area, with Netflix expecting to double ad revenue in 2025. The company forecasts $9 billion in ad-based revenue by 2030.
“With another robust earnings showing in Q2, Netflix continues a winning streak going back several quarters and cements its place as the leader among streaming services,“ said Emarketer analyst Paul Verna. - AFP
