Motley Fool Money Netflix Rising, WWE Preparing
Oct 19, 2022
Tim Beyers, a Senior Analyst at Motley Fool, shares intriguing insights on Netflix's unexpectedly strong third-quarter performance, including a surge in profits and subscriber growth thanks to its new ad platform. Meanwhile, analysts Nick Sciple and Jim Gillies dive into the evolving landscape of World Wrestling Entertainment, exploring its recent leadership shake-up and the potential for acquisition amidst a transformation into a media giant. They discuss WWE's strategic maneuvers in rights deals and its future in the competitive entertainment arena.
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Netflix's Q3 Success
- Netflix exceeded Q3 expectations for profits, revenue, and subscriber growth, adding 2.4 million subscribers.
- This growth was primarily driven by international markets, especially Asia Pacific and EMEA.
Netflix's Guidance Shift
- Netflix will stop providing subscriber guidance, focusing on revenue and profit instead.
- This shift aligns with their new ad-supported tier launching November 3rd.
Netflix's Ad Tier
- Netflix's ad tier is expected to be revenue neutral or slightly accretive, comparable to the basic subscription tier.
- This suggests the $6.99 ad tier will generate roughly $3 in ad revenue, initially.