On Tuesday, Oct. 18, Netflix Inc. is expected to report for the third quarter of 2022. The company's subscriber growth forecast will be in the spotlight as the streaming leader launches a new ad-supported plan to compete with other industry giants.
Last week, Netflix announced the plan to be released in November. It will be priced at $6.99 per month. The start date happens ahead of experts’ projections claiming the release to come out in early 2023, or after Disney+’s December rollout.
The move has been delayed for a long time, but analysts note it is intended to accelerate the entire market. Today, the connected TV advertising market is also growing at a rapid pace.
As the largest player in the industry, Netflix is expected to attract strong demand from advertisers looking for greater reach and a younger target audience, said experts at brokerage UBS Equities.
Refinitiv analysts predict Netflix's subscriber to hike by 1 million in the third quarter of 2022.
Advertising is an important step as it allows Netflix to compete with other free-to-air broadcasters around the globe, as Paolo Pescatore, an expert at PP Foresight, noted.