While many are looking at the news Netflix missed its global subscriber target for Q3 there is good news for the company – EMEA subscriber numbers actually increased.
In total, Netflix added another 759,000 subs across Europe, the Middle East and Africa. That number is down compared to Q2 when the streamer signed up 2.7 million new subs in the region. In fact, Netflix has already added 10.5 million subscribers in EMEA between January and the end of September.
Globally, Netflix added 2.2 million subscribers in Q3, down from its forecast of 2.5 million. However, it did beat revenue expectations, pulling in $6.44 billion.
Wall Street has reacted to the miss in the streamer’s subscriber growth with Netflix’s shares falling around 6 per cent in after hours trading.
According to analyst Paolo Pescatore, expectations are always high for Netflix. “This has been an exceptional year,” he tells TVBEurope. “Interestingly during this quarter only EMEA saw increasing quarterly growth YoY in subs. Therefore, prospects for Europe should be better given that we are seeing lockdown restrictions being imposed again. Bundles with better in home connectivity from telcos and pay TV providers should help fuel growth.”
The streamer’s first half results certainly saw a bump with the closure of the majority of cinemas worldwide as countries implemented lockdown procedures. Pescatore says the H1 figures suggested that Netflix was thriving while the cinemas were closed. “This should continue as people will need to be entertained at home. There is an opportunity for the film industry to work more closely with Netflix given its global subscriber base. Now is the time to connect with audiences in a different way,” he adds.
One of the plans Netflix has put in place to boost subscriber numbers in the final quarter of the year is “StreamFest” a two-day event allowing non-subscribers to stream the company’s library without a subscription plan. The first of these events will take place in India in December. This follows the streamer’s decision to stop offering free trials.
According to Pescatore, StreamFest is a move to drive users to pay for its service far more quickly. “It is all about monetising its base. Most, if not everyone, is aware of Netflix. However, it is the breadth of programming that people aren’t necessarily aware of. Why give a service away for a month when a few days or week will do the job in showcasing the Netflix universe?”