Global ‘Squid Game’ Mania Lifts Netflix Quarter

Netflix Inc.’s planetary sensation “Squid Game” helped lure much caller customers than expected, the world’s largest streaming work said connected Tuesday arsenic it predicted a packed lineup would further boost signups done the extremity of the year.

After a crisp slowdown successful the archetypal fractional of 2021, Netflix added 4.38 cardinal subscribers from July done September to scope 213.6 cardinal worldwide. Wall Street analysts had projected 3.86 cardinal additions, according to Refinitiv data.

Netflix enjoyed a subscriber roar past twelvemonth arsenic COVID-19 kept audiences astatine home, but maturation stalled aboriginal this year. At the aforesaid time, Walt Disney Co’s Disney+, AT&T Inc.’s HBO Max and different competitors bolstered their offerings. Netflix blamed the earlier weakness successful portion connected a bladed slate of caller programming caused by accumulation shutdowns from the pandemic.

Then, South Korean play “Squid Game” debuted connected Sept. 17 and amazed executives by becoming the streaming service’s most-watched archetypal bid successful its archetypal month. On Tuesday, Netflix said a “mind-boggling” 142 cardinal households had watched the acheronian play astir radical who vie successful a deadly contention to erase fiscal debt.

The series, made with a comparatively tiny budget, changeable to the apical of Netflix viewing charts successful 94 countries, kick-started income of way suits and Vans sneakers, and kindled involvement successful learning Korean. “Squid Game” merchandise is present connected its mode to retailers, Netflix said.

The fervor astir “Squid Game” besides is expected to assistance the existent quarter. Netflix projected it volition prime up 8.5 cardinal caller customers by year’s end, up of manufacture forecasts of 8.33 million, arsenic it releases a dense lineup of caller programming. Upcoming debuts see big-budget enactment flick “Red Notice” and a 2nd play of phantasy play “The Witcher.”

It besides expects a “more normalized” programming slate successful 2022 dispersed passim the year, “assuming nary new COVID waves oregon unforeseen events,” the institution said successful a quarterly missive to shareholders.

The Netflix logo is seen connected a machine successful Washington, connected July 10, 2019. (Alastair Pike/AFP via Getty Images)

Shares of Netflix were adjacent to adjacent successful after-hours trading astatine $641 pursuing the net report.

Overseas Growth

Most caller lawsuit pickups successful the 4th came from the Asia Pacific market, wherever Netflix present has 30 cardinal subscribers. Industry experts judge the portion whitethorn rival the United States and Canada— Netflix’s largest market—in 3 to 5 years, said Third Bridge elder expert Joe McCormack.

Netflix is trying caller ways to pull customers overseas, including offering a escaped program successful Kenya. It volition instrumentality 1 to 2 years to archer if that maneuver leads to much paying subscribers, the institution said.

For the 4th that ended successful September, diluted earnings-per-share came successful astatine $3.19, beating expert expectations of $2.57. Revenue roseate 16 percent to $7.5 billion.

Before the net report, Netflix shares had risen astir 22 percent this twelvemonth and were trading adjacent grounds highs, but their gains lag down the 54 percent summation successful the Nasdaq.

Netflix, which keeps overmuch of its viewership information secret, besides said it volition merchandise accusation much often and displacement its main publically reported metric to hours viewed, alternatively than the fig of accounts that watched a rubric for astatine slightest 2 minutes. The institution noted that it competes with a ample acceptable of activities beyond TV including TikTok and Fortnite. When Facebook Inc. suffered a planetary outage successful aboriginal October, “our engagement saw a 14 percent summation during this clip period,” Netflix said.

Executives did not code idiosyncratic complaints astir a Dave Chappelle drama special, which the institution has antecedently defended. Some employees accidental Chappelle made comments that harmful to transgender people, and they program a walkout connected Wednesday.

By Lisa Richwine and Eva Mathews