Netflix Publishes Second-Quarter Results, Adds 8 Million Subscribers and Expands Lead as Dominant TV Streaming Platform
Netflix has published its second-quarter results, adding 8 million subscribers and expanding its lead as the dominant TV streaming platform. The company now has 277 million global subscribers. Last quarter, the streaming giant announced that it would stop reporting subscriber numbers and average revenue per member, starting from the first quarter of next year.
Netflix reported a revenue of $9.56 billion and an operating profit of $2.6 billion, both significantly higher than last year. Although the company exceeded Wall Street expectations, its stock price dropped after hours as it predicted a slowdown in growth, while its paid sharing efforts began to yield diminishing returns.
The company also revealed that it is working on a new TV homepage design, which it considers its biggest update in a decade. "This new interface provides at a glance more visible information about the title, including the synopsis, genre, and ratings," the company wrote. Additionally, "title previews are also larger and more dynamic, with more immersive trailers and larger illustrations to facilitate navigation. We have also simplified the navigation bar and moved it to the top of the page to create faster and easier shortcuts. And this new design includes My Netflix, which contains everything members have recorded or watched and was previously only available on mobile."
In a separate note, Netflix CEO Ted Sarandos addressed the use of generative artificial intelligence and its role at Netflix, stating: "I think AI will generate a tremendous set of creative tools, an excellent way for creators to tell better stories."