Netflix's efforts to grow ad tier in focus as subscriber growth slows
Netflix likely added the fewest number of subscribers in five quarters during April-June as sharp gains following a crackdown on password sharing ebbed and viewer attention moved to summer sporting events including the Euro soccer tournament.
The company added an estimated 4.82 million subscribers in the second quarter, according to LSEG data. That would be the lowest additions since the first quarter of 2023 and about half the 9.3 million it added in the previous three months.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitIIT DelhiCertificate Programme in Data Science & Machine LearningVisit Still, the streaming giant's efforts to sell a lower-priced ad-supported tier have yielded strong ad revenue growth. The company's ad revenue is expected to have more than doubled in the June quarter.
Overall revenue likely rose 16.4% to $9.53 billion, marking the fastest growth since the second quarter of 2021.
Netflix's original shows such as the historical romance «Bridgerton» and the limited series «Baby Reindeer» — based on comedian Richard Gadd's experience with a stalker — topped most-watched charts in the second quarter, according to Nielsen data.
When it reports second-quarter results on Thursday, investors will scrutinize the streaming giant's efforts to expand its lower-priced plan with advertising and look for updates on new growth drivers.
In May, the company said its
