Netflix Tuesday released its earnings for the second quarter of 2021, and the company said that it posted a 19 percent year-over-year increase in revenue to $7.3 billion, and a 36 percent year-over-year increase in operating income, to $1.8 billion.
However, per CNBC, the company’s number of new subscribers, 1.54 million, was lower than analyst expectations, although the revenue number was slightly above expectations.
The company actually lost over 400,00 net subscribers in the quarter in North America, which can be attributed to the service’s recent price hike. The company did gain subscribers in every other region of the world, however.
“COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world,” the company said in its earnings release.
The company also touted some recent releases that have performed well. This included d 129 Emmy nominations, which were announced last week.
“Zack Snyder’s Army of the Dead was a blockbuster as 75m member households chose to watch this action packed zombie spectacle in its first 28 days of release. As an extension to Army of the Dead, a prequel, Army of Thieves, will be released in Q4’21 along with a spinoff anime series later in 2022. Fatherhood, a dramedy starring Kevin Hart, was another hit, drawing an estimated 74m member households in its first 28 days. And Q2 also featured our biggest Netflix animated film to date with 53m member households choosing to watch The Mitchells vs. The Machines.
Netflix also addressed growing competition from newer streaming services, as well as entertainment beyond streaming.
“We are still very much in the early days of the transition from linear to on-demand consumption of entertainment. Streaming represents just 27% of US TV screen time, compared with 63% for linear television, according to Nielsen. Based on this same study, Nielsen estimates that we are just 7% of US TV screen time. Considering that we are less mature in other countries and that this excludes mobile screens (where we believe our share of engagement is even lower), we are confident that we have a long runway for growth. As we improve our service, our goal is to continue to increase our share of screen time in the US and around the world.”
The company also confirmed reports earlier this week that it plans to expand into gaming.
“We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV,” the company said.
Stephen Silver is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.