Netflix has reversed previous member losses with a midsummer increase in the United States, ahead of the launch of a cheaper version of the video streaming service that will contain advertisements for the first time.
It added 2.4 million subscribers between July and September, the US corporation said on Tuesday, reversing a 1.2 million customer loss in the first half of the year due to increased competition and increasing inflation, which is straining household finances.
Netflix now has 223 million customers, allowing the business to reclaim the title of the world’s largest video streaming provider, even if temporarily.
Disney+ surpassed Netflix in August when it declared 221 million users, a figure that will be updated on November 8 when Disney releases its summertime numbers.
“After a challenging first half, we believe we’re on a path to re-accelerate growth,” Netflix predicted in a shareholder letter accompanying the third-quarter results.
The increase in subscribers also helped Netflix earn $US1.4 billion ($A2.2 billion), or $US3.10 per share, a 4% decrease from the same period last year.
Revenue increased 6% over last year to $US7.93 billion.
Subscriber growth, profits per share, and sales all above FactSet’s analyst estimates.
Netflix’s stock rose more than 14% after the latest earnings report was released.
Despite this, the stock has lost more than half its value this year, reflecting concerns that Netflix’s best days have past.