LOS GATOS, Calif. — Netflix’s subscriber count in the U.S.-Canada (UCAN) region rose slightly in the third quarter of 2022 with 100,000 paid net additions recorded, according to the streamer’s financial results for the quarter ended Sept. 30, 2022, released yesterday.
Netflix now has 73.4 million paid memberships in the UCAN region, which is still less than the 74 million subscribers it reported in Q3 2021 as the streamer experienced membership losses totalling almost two million in the first half of fiscal 2022. (Please see the chart below.)
Netflix’s revenue in the region increased 11% to US$3.6 billion in the third quarter of 2022 from US$3.3 billion in Q3 2021. Average revenue per membership (ARM) rose 12% to US$16.37 in Q3 2022, compared to US$14.68 in Q3 2021.
Looking at Netflix’s global results, the streamer added 2.4 million paid memberships overall in Q3 2022, which exceeded its forecast of one million net additions for the quarter, the company said in its letter to shareholders.
Global Netflix memberships now total 223.1 million, a 4.5% year-over-year increase from the 213.6 million subscribers reported in Q3 2021. Netflix is forecasting 4.5 million net subscriber additions for Q4 2022.
Netflix’s global revenue increased 5.9% to US$7.9 billion in Q3 2022, compared to almost US$7.5 billion in Q3 2021. Global net income fell slightly to US$1.4 billion in this year’s third quarter, down from US$1.45 billion in the same quarter last year.
“After a challenging first half, we believe we’re on a path to reaccelerate growth. The key is pleasing members,” reads Netflix’s shareholder letter.
Netflix recently announced its new ad-supported “Basic with Ads” plan, available for $5.99 per month in Canada, will launch in November.
“While we’re very optimistic about our new advertising business, we don’t expect a material contribution in Q4’22 as we’re launching our Basic with Ads plan intra-quarter and anticipate growing our membership in that plan gradually over time,” Netflix says in its shareholder letter.
“Our aim is to give our prospective new members more choice — not switch members off their current plans. Members who don’t want to change will remain on their current plan, without ads, at the current price.”
For more on Netflix’s Q3 2022 financial results, please click here.
Chart borrowed from Netflix’s letter to its shareholders.
