Many of the leading streaming companies reported Third Quarter earnings last week. Netflix added 4.4 million new subs globally during the quarter, topping its previous forecast of 3.5 million new subscribers. Nearly two thirds of those new customers came from markets in Asia, fueled by the runaway popularity of the South Korean mini-series SQUID GAME. In the U.S. Netflix tallied only 70,000 new subscribers, suggesting that the company has reached a ceiling in its ability to grow and will now need to find new ways to add revenues, perhaps through efforts to crack down on shared accounts and develop new entertainment options such as gaming.
AT&T WarnerMedia also announced growth for HBO Max during the quarter, with a net increase of 1.9 million subscribers globally, despite a drop in its Domestic count. The falloff in the U.S. resulted from a decision to terminate its agreement with Amazon to feature HBO Max on Amazon’s channel hub, which contributed nearly 5 million subscribers. While the channel hub increased HBO Max’s exposure, it also provided Amazon rights to subscriber data. Even after the 5 million drop from ending its distribution through Amazon, the total net drop in U.S. subscribers came in at only 1.8 million, indicating a net increase in its direct customer acquisition of 3.2 million subscribers. In Q4, the day & date releases of DUNE, KING RICHARD and MATRIX: RESURRECTION are expected to drive new subscriptions.