Netflix Rises on Strong Subscriber Growth, Bets on Higher Customer Sign-ups

The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
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Netflix Rises on Strong Subscriber Growth, Bets on Higher Customer Sign-ups

The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)
The Netflix logo is displayed at Netflix corporate offices on September 25, 2023 in Los Angeles, California. (Getty Images/AFP)

Netflix shares rose 5.2% in premarket trading on Friday, after the streaming giant topped Wall Street estimates for new subscriber additions by more than 1 million and projected higher customer sign-ups for the December quarter.

Netflix on Thursday said it picked up 5.1 million new streaming subscribers in the third quarter, with its ad-supported service accounting for more than 50% of sign-ups in countries where it was available.

“Netflix is the one thing people can’t live without and its latest results are testament to its lasting appeal,” said Dan Coatsworth, investment analyst at AJ Bell, Reuters reported.

The streaming platform projected its customer additions for the December quarter - traditionally a strong period around the holidays - would outpace the September quarter. The second season of Korean drama "Squid Game" is scheduled for release in late December.

Shares of Walt Disney and Warner Bros Discovery rose marginally.

"Peers in the legacy media space are losing money hand over fist, meaning Netflix can push its advantage in content creation while others can’t stomach allocating more capital," said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

Ads are also in the mix for 2025, and price hikes that have started in some markets have the potential to "squeeze more" from existing subscribers, he said.

At least eight analysts raised their price targets on the stock following results, bringing the median target to $750 from $706.38 according to LSEG data.

But while the customer additions outpaced forecasts, it was below the 8.76 million that Netflix picked up in the year-ago quarter.

The company has been trying to shift investor attention away from sign-ups to metrics including revenue growth and profit margins as the pace of subscriber growth mellows.

So far this year, Netflix's stock has risen about 41.2%, Disney has been up 6.9% while Warner Bros has shed about 31%.



Social Media Companies Slam Australia's Under-16 ban

Social media companies slam Australia's under-16 ban - AFP
Social media companies slam Australia's under-16 ban - AFP
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Social Media Companies Slam Australia's Under-16 ban

Social media companies slam Australia's under-16 ban - AFP
Social media companies slam Australia's under-16 ban - AFP

Social media giants on Friday hit out at a landmark Australian law banning them from signing up under-16s, describing it as a rush job littered with "many unanswered questions".

The UN children's charity UNICEF Australia warned the law was no "silver bullet" against online harm and could push kids into "covert and unregulated" spaces online.

The legislation, approved by parliament on Thursday, orders social media firms to take "reasonable steps" to prevent young teens from having accounts, AFP reported. It is due to come into effect after a year.
Prime Minister Anthony Albanese said the age limit may not be implemented perfectly -- much like existing restrictions on alcohol -- but it was "the right thing to do".

The crackdown on sites like Facebook, Instagram and X would lead to "better outcomes and less harm for young Australians", he told reporters.

Platforms have a "social responsibility" to make children's safety a priority, Albanese said.

Social media firms that fail to comply with the law face fines of up to Aus$50 million (US$32.5 million) for "systemic breaches".

TikTok said it was "disappointed" in the law, accusing the government of ignoring mental health, online safety and youth experts who had opposed the ban.

"It's entirely likely the ban could see young people pushed to darker corners of the internet where no community guidelines, safety tools, or protections exist," a TikTok spokesperson said.

Tech companies said that despite the law's perceived shortcomings, they would engage with the government in shaping how it could be implemented in the next 12 months.

The legislation offers almost no details on how the rules will be enforced -- prompting concern among experts that it will be largely symbolic.

Members of the public appeared doubtful.

"I don't think it will actually change a lot because I don't see that there's really a strong way to police it," 41-year-old Emily Beall told AFP in Melbourne.

Arthur McCormack, 19, said some things he had seen on social media when he was younger were "sort of traumatic".

"I think it's good that the government is on this ban. But in terms of enforcement, I'm not sure how it will be carried out," he said.

Meta -- owner of Facebook and Instagram -- called for consultation on the rules to ensure a "technically feasible outcome that does not place an onerous burden on parents and teens".

- 'Serious concerns' -

But Meta said it was concerned "about the process, which rushed the legislation through while failing to properly consider the evidence, what industry already does to ensure age-appropriate experiences, and the voices of young people".

A Snapchat spokesperson said the company had raised "serious concerns" about the law and that "many unanswered questions" remained about how it would work.

But the company said it would engage closely with the government to develop an approach balancing "privacy, safety and practicality".

UNICEF Australia policy chief Katie Maskiell said young people need to be protected online but also included in the digital world.

"This ban risks pushing children into increasingly covert and unregulated online spaces as well as preventing them from accessing aspects of the online world essential to their wellbeing," she said.

Leo Puglisi, a 17-year-old online journalist based in Melbourne, was critical of the legislation.

He founded streaming channel 6 News, which provides hourly news bulletins on national and international issues, in 2019 at the age of 11.

- Global attention -

"We've been built up by having 13 to 15-year-olds see 6 News online and then join the team," Puglisi said in a statement.

"We have said that this ban seriously risks restricting creativity from our young people, no matter what passion or future career they want to explore," he added.

One of the biggest issues will be privacy -- what age-verification information is used, how it is collected and by whom.

Social media companies remain adamant that age verification should be the job of app stores, but the government believes tech platforms should be responsible.

Exemptions will likely be granted to some companies, such as WhatsApp and YouTube, which teenagers may need to use for recreation, school work or other reasons.

The legislation will be closely monitored by other countries, with many weighing whether to implement similar bans.

Lawmakers from Spain to Florida have proposed social media bans for young teens, although none of the measures have been implemented yet.

China has restricted access for minors since 2021, with under-14s not allowed to spend more than 40 minutes a day on Douyin, the Chinese version of TikTok.