‘Squid Game’ Frenzy Helps Netflix Top Subscriber Targets

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Worldwide interest in Netflix Inc’s Korean thriller “Squid Game” attracted more new customers than expected in the last quarter, driving shares of the world’s largest streaming service by 3% on Tuesday.

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

Netflix enjoyed a subscriber boom last year as COVID-19 kept audiences at home, but growth stalled in the first half of 2021. At the same time, competitors like Walt Disney Co’s Disney + and HBO Max’s AT&T Inc have stepped up their offerings. Netflix blamed part of this year’s initial weakness on a small list of new programming caused by production shutdowns during the pandemic.

Then, “Squid Game” debuted on September 17 and surprised executives by becoming the streaming service’s most-watched original series in its first month, according to the company.

The dark drama tells the story of people who compete in a deadly competition to erase financial debt. The series has topped Netflix viewing charts in several countries, boosted sales of Vans tracksuits and sneakers, and sparked interest in learning Korean.

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The excitement around “Squid Game” is also expected to fuel the current quarter. Netflix projected that it will attract 8.5 million new customers by the end of the year, ahead of industry forecasts of 8.33 million, as the pace of new launches accelerates. Upcoming releases include the big-budget action movie “Red Notice” and a second season of the fantasy drama “The Witcher.”

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For the quarter ending in September, diluted earnings per share were $ 3.19. Revenue increased 16% to $ 7.5 billion.

Before the earnings report, Netflix shares had risen about 22% this year and were trading near all-time highs, but its earnings lag behind the 54% rise on the Nasdaq.

Reference-torontosun.com

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