Netflix's profits jump 45% thanks to higher subscription prices

Revenue rose 16% to $11.1 billion for the quarter ended June 30.

Netflix reported better-than-expected second-quarter results on Thursday. The company's profit jumped 45% year-on-year as the streaming giant benefited from subscription price increases and a growing advertising business.

Revenue rose 16% to $11.1 billion for the quarter ended June 30, surpassing analysts' forecasts and the company's own expectations. Net income reached $3.1 billion.

Netflix noted the strong performance of its content during the quarter. Among the big hits is the third season of Squid Game, which attracted 122 million viewers, AFP reported.

"It has already become the sixth most successful season of a series in our history, with only a few weeks of viewing so far," the company said.

Other notable titles include the third season of Ginny & Georgia with 53 million views and Sirens with 56 million views.

The animated film KPop Demon Hunters, with 80 million views, has become "one of our biggest animated films to date," and its soundtrack has topped music charts around the world.

"Korean content continues to be popular with our audience," the company said, pointing to the ongoing success of its international programming, which has become a hallmark of Netflix's global strategy.

Netflix expressed optimism for the second half of 2025, pointing to upcoming programming that includes the highly anticipated second season of Wednesday, the final season of Stranger Things and new films from major directors, including Kathryn Bigelow and Guillermo del Toro.

The company also announced plans to expand its live programming, including boxing matches and NFL games, to diversify its content beyond standard on-demand entertainment.

Netflix shares have risen approximately 40% since the beginning of the year as investors reacted positively to the company's transition to profitability.

The company had over 300 million subscribers in December last year, at the end of a particularly successful holiday season when it had just gained nearly 19 million new subscribers.

However, it no longer discloses these figures in order to focus on audience "engagement" metrics (time spent watching content).

During the quarter, Netflix continued to expand its advertising capabilities and expects to double its advertising revenue in 2025, although it did not provide specific figures.

The company forecasts $9 billion in revenue from its ad-supported subscriptions by 2030. | BGNES

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