What Netflix’s quarterly report told us about

In the third quarter, the streaming service Netflix Inc. (NFLX) showed strong results. First of all, the number of new subscribers turned out to be almost 1 million more than expected. 

At the same time, the reason was one cheap TV series that vividly demonstrated the advantages of Netflix’s own “content factory.” For the quarter ended September 30, Netflix revenue grew 16% year-on-year to $7.48 billion. 

Earnings per share amounted to $3.19 – almost twice as much as last year, mainly due to converting debt into euros. The important news was Netflix’s announcement of its intention to enter the video game market, where the company may have great potential for growth due to a broad global audience. 

The current report focuses on the series “The Squid Game,” which has become extremely popular globally and has generated many memes. In addition, the series became the most-watched in the history of Netflix: it in 142 million households. 

This series started restoring the workflow at Netflix after stopping the filming of film production due to COVID-19. In many ways, the “Squid Game” increased the number of Netflix subscribers by 4.4 million, although no more than 3.5 million. 

Moreover, in the fourth quarter, Netflix now expects an audience growth of 8.5 million to 222 million viewers worldwide., in the second quarter, the company attracted only 1.54 million viewers. 

Should note that Netflix’s audience and profit forecasts are not always accurate. The company sells entertainment content and depends on short-term factors, such as fashion, simultaneous showing of several popular shows, etc.

In particular, during the shutdown of Facebook services, watching Netflix series increased by 14%. At the auction on October 20, the NFLX stock was worth $639.