Netflix Beats Expectations on Profit and Subscribers

Netflix bet heavily on its content line-up, including "3 Body Problem," based on a Chinese trilogy of novels. MARIO TAMA / GETTY IMAGES NORTH AMERICA/AFP/File
Netflix bet heavily on its content line-up, including "3 Body Problem," based on a Chinese trilogy of novels. MARIO TAMA / GETTY IMAGES NORTH AMERICA/AFP/File
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Netflix Beats Expectations on Profit and Subscribers

Netflix bet heavily on its content line-up, including "3 Body Problem," based on a Chinese trilogy of novels. MARIO TAMA / GETTY IMAGES NORTH AMERICA/AFP/File
Netflix bet heavily on its content line-up, including "3 Body Problem," based on a Chinese trilogy of novels. MARIO TAMA / GETTY IMAGES NORTH AMERICA/AFP/File

Netflix topped earnings expectations Thursday, reporting that profit and subscriber ranks grew as its heavy bet on a rich content line-up paid off amid a crackdown on password sharing.
The leading streaming television service said it gained 9.3 million subscribers in the recently ended quarter, raising the total to 269.6 million.
Netflix reported a profit of $2.3 billion on revenue of nearly $9.4 billion in the quarter, compared to a net income of $1.3 billion on $8.2 billion in revenue in the same period a year earlier.
"Netflix continues to lay the smackdown on its competition," said Emarketer senior analyst Ross Benes.
"This signals that password sharing was even more common than previously thought as Netflix keeps converting freeloader viewers into paid users."
Company shares slipped more than 4 percent to $581 in after-market trades, apparently due to the company saying sales in the current quarter might be less than market expectations.
Netflix shares have climbed since the start of this year, but investors seemed wary of the company's ability to keep pumping up revenue and develop its nascent ad-supported tier into a meaningful money-maker.
The company launched an ad-subsidized offering last year around the same time as the crackdown on sharing passwords outside of homes.
Netflix is still in early days of building its ad business, and it remains a work in progress, according to co-chief executive Greg Peters.
'3 Body Problem'
Netflix unveiled a sprawling TV and film lineup for 2024 as it bet that must-see content would keep viewers paying for the streaming service.
In March, Netflix released keenly-anticipated "3 Body Problem."
The series was adapted from a best-selling Chinese trilogy of novels which take place in an alternate version of modern reality where humanity has made contact with an alien civilization.
Other shows due later this year include the eagerly awaited second season of "Squid Game" -- the dystopian Korean horror tale about a fictional, deadly game show which remains by far the most-watched Netflix TV series ever.
Also among a notably international lineup were a Spanish-language, Colombian-made TV series based on Gabriel Garcia Marquez's beloved novel "One Hundred Years of Solitude," and a six-part drama about the life of Brazilian racing great Ayrton Senna.
Britain's Prince Harry and his actress wife Meghan Markle are working on two nonfiction series with Netflix -- a lifestyle program and a show on professional polo, their production company announced earlier this month.
The couple, who split with the British monarchy in 2020 and now reside in California, signed a deal with the streaming giant that same year for multiple projects.
On the movie side, Eddie Murphy returns this summer in a new "Beverly Hills Cop" sequel.
"As Netflix becomes more entrenched as an entertainment industry juggernaut, it will seek to avoid adopting the complacency of the companies it has displaced," Benes said.
Netflix co-chief executive Ted Sarados said on an earnings webcast that the company "has no appetite for making fewer films" but is determined to make better films.
Fandom fueled
Sarandos said TikTok and YouTube short-form videos, while competing for viewing time in the big picture, have also revved up "fandom" with people sharing show snippets, memes, and commentary.
Those platforms have also helped Netflix spot talented storytellers that the streaming television service is keeping its eyes on, according to Sarandos.



RSFF Concludes Milestone Participation in Cannes Film Festival

Members of the public walk in front of the Palais des Festival prior to the 74th international film festival, Cannes, southern France, July 5, 2021. (AP Photo/ Brynn Anderson)
Members of the public walk in front of the Palais des Festival prior to the 74th international film festival, Cannes, southern France, July 5, 2021. (AP Photo/ Brynn Anderson)
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RSFF Concludes Milestone Participation in Cannes Film Festival

Members of the public walk in front of the Palais des Festival prior to the 74th international film festival, Cannes, southern France, July 5, 2021. (AP Photo/ Brynn Anderson)
Members of the public walk in front of the Palais des Festival prior to the 74th international film festival, Cannes, southern France, July 5, 2021. (AP Photo/ Brynn Anderson)

The Red Sea Film Foundation (RSFF), which participated in the recently concluded 77th Cannes Film Festival, played an important role in supporting Arab cinema and promoting it globally, an RSFF press release said.
A notable achievement at the festival was the Saudi film "Norah", directed by Tawfik AlZaidi and supported by the Red Sea Fund. "Norah" made history as the first Saudi film to compete in the prestigious "Un Certain Regard" section, receiving a special jury mention and selling out screenings within hours, according to SPA.

The Egyptian film "The Brink of Dreams", also supported by the Red Sea Fund, directed by Nada Riyadh and Ayman El Amir, won the Golden Eye Award for Best Documentary Film, which it shared with the French film "Ernest Cole: Lost and Found".
According to the release, RSFF has supported unique film projects and emerging talent through programs like Red Sea Fund, Red Sea Souk, and Red Sea Labs. These programs have led cinematic works to gain recognition and awards at international festivals.
One notable film is "Four Daughters" directed by Kaouther Ben Hania, which received an Academy Award nomination for Best Documentary.