Netflix is about to report earnings — here's what to expect

Netflix reports second-quarter net connected Wednesday and investors volition wage adjacent attraction to the streaming giant's crackdown connected password sharing, arsenic good arsenic the precocious launched ad-supported tier.

Analysts are predicting — and immoderate information sources person shown — that Netflix's subscriber basal volition get a boost from the outpouring rollout of its password crackdown.

Here's what analysts are expecting for the quarter, according to Refinitiv:

In May, Netflix began alerting members astir its caller sharing policy, which prevents freeloaders from sharing accounts. Under the caller policy, members tin either transportation a illustration to idiosyncratic extracurricular of their household truthful they tin wage for their ain account, oregon the relationship holder tin wage a $7.99 further interest per person.

Netflix saw its subscriber basal rise weeks aft the rollout, according to a study from Antenna. Analysts from Wells Fargo and MoffettNathanson besides expect to spot a boost to subscriber additions.

Wells Fargo is raising its 2nd 4th nett additions estimation from 1.5 cardinal to 2.1 million, according to a enactment from expert Steven Cahall this week.

Investors volition besides ticker for immoderate details Netflix provides connected its precocious launched cheaper, ad-supported tier. Netflix introduced some the caller sharing argumentation and advertisement tier successful the past twelvemonth arsenic portion of its effect to its archetypal subscriber loss successful much than a decennary successful 2022.

On Wednesday, Netflix confirmed that it removed its "basic" ad-free plan, making its modular program with ads its cheapest enactment astatine $6.99 a month. The modular and premium tiers without commercials outgo $15.49 and $19.99, respectively, a month.

Netflix's banal has risen with the rollout of these initiatives. The company's shares person climbed much than 60% this year, and it notched a 52-week precocious connected Tuesday amid expectations it would amusement maturation this quarter.

Media companies person turned much to ad-supported streaming arsenic a mode to get to profitability.

During its transportation to advertisers successful May, Netflix unveiled fewer details astir its ad-supported tier, albeit capable to push its banal higher. The institution said it had 5 cardinal progressive users for the caller tier, and 25% of its caller customers were signing up for the tier successful areas wherever it's available.

Also apical of caput during the net volition beryllium the effects of the Hollywood writers and actors' strikes. As the media manufacture finds itself going done 1 of its astir tumultuous periods successful years, actors precocious joined writers connected the picket line, each but shutting down Hollywood.

Netflix is expected to fare amended than different media companies during the onslaught owed to its heavy seat of content, peculiarly from planetary sources.