Netflix on Thursday reported Q2 revenue of $12.56B, up more than 13% from the same period a year earlier, while net income rose almost 9% to $3.4B -- both results that “were roughly in line with analysts’ expectations.” Netflix attributed the Q2 gains “in part to recent price increases and growth in advertising.” The streamer also mentioned that it “expects revenue and profit gains to slow” in Q3, forecasting revenue growth of 11.7% -- “its smallest year-on-year increase of any quarter since late 2023.” Netflix said subscriber growth also “helped contribute to the quarter’s strength.” The streamer also added that it “expects live events to make up 5% of its content budget this year” (WALL STREET JOURNAL, 7/16).
For the first time on Thursday, Netflix explained that “some of its shows were designed to keep customers while others were designed to acquire them.” Live events like MLB’s Home Run Derby, which Netflix broadcast this week, “don’t drive many views but do encourage new users to sign up” (N.Y. TIMES, 7/16). Netflix has “expanded its portfolio of live programming over the years,” including adding NFL games and streaming MLB’s Opening Day game. But some analysts say Netflix “needs to have a larger share of live sports content to draw sports fans into subscribing” (L.A. TIMES, 7/16).
