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Netflix added 8mn subscribers thanks to hits such as Baby Reindeer and Bridgerton, the most sign-ups in a second quarter since the depths of the pandemic in 2020.
The company’s earnings rose 48 per cent to $4.88 per share on revenue of $9.5bn, beating Wall Street forecasts. But Netflix said it expected new subscriber additions in the current quarter to be lower than a year ago, when its password crackdown went into full effect.
Netflix said its advertising tier now accounts for 45 per cent of sign-ups in markets where it is available, but it doesn’t expect it to be a “primary driver of revenue growth” until 2024 or 2025.
Its shares fell 4 per cent in after-hours trading.
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