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id="primary" class="content-area"> <main id="main" class="site-main" role="main"> <div class="article-wrap"> <article id="post-1459313" class="post-1459313 post type-post status-publish format-standard has-post-thumbnail tag-earnings observer_company-netflix channel-business channel-streaming channel-media nyo_person-ted-sarandos nyo_person-bela-bajaria" data-post="" data-title="Netflix Added 5M Subscribers in Q3 Despite Lingering Effects of Hollywood Strikes" data-url="" data-page-url="/2024/10/ted-sarandos-netflix-programming-almost-normal-following-strikes/" data-date="2024-10-17 21:00:32" data-date-iso="2024-10-17T21:00:32-04:00" data-author="Alexandra Tremayne-Pengelly" data-coauthors="Alexandra Tremayne-Pengelly" data-channels="Business, Streaming, Media" data-piped-channels="Business|Streaming|Media" > <header class="entry-header"> <div class="entry-teaser"> <a href="https://observer.com/business/" aria-label="Read more articles on Business">Business</a><span>  •  </span><a href="https://observer.com/media/" aria-label="Read more articles on Media">Media</a> </div> <h1 class="entry-title" itemprop="headline">Netflix Added 5M Subscribers in Q3 Despite Lingering Effects of Hollywood Strikes</h1> <h2 class="dek">Netflix had nearly 283 million subscribers globally at the end of September.</h2> <div class="entry-meta nyo-social-comments nyo-social-comments-above"> By <span class="author" itemprop="author"><a rel="author" class="url fn n" href="https://observer.com/author/alexandra-tremayne-pengelly/" title="View All Posts by Alexandra Tremayne-Pengelly">Alexandra Tremayne-Pengelly</a></span> • <span class="entry-date"><time itemprop="datePublished" datetime="2024-10-17">10/17/24 9:00pm</time></span> <svg aria-hidden="true" style="position: absolute; width: 0; height: 0; overflow: hidden;" version="1.1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"> <defs> <symbol id="icon-envelope" viewBox="0 0 28 28"> <path d="M26 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id="attachment_1459316" aria-describedby="caption-attachment-1459316" style="width: 970px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" class="size-full-width wp-image-1459316" src="https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?quality=80&w=970" alt="Man in suit stands on red carpet" width="970" height="632" srcset="https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg 5070w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=300,195 300w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=768,500 768w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=635,413 635w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=1536,1000 1536w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=2048,1333 2048w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=970,632 970w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=320,208 320w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=1920,1250 1920w, https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?resize=50,33 50w" sizes="(max-width: 600px) 300px, 620px" /><figcaption id="caption-attachment-1459316" class="wp-caption-text">Netflix won’t be making changes to its compensation structure, according to co-CEO Ted Sarandos. <span class="media-credit">Chris Delmas/AFP via Getty Images</span></figcaption></figure> <p>The impacts of last year’s Hollywood strikes are still being felt at <a href="https://observer.com/company/netflix/" title="Netflix" class="company-link">Netflix (NFLX)</a>, according to the streaming giant’s co-CEO <a href="https://observer.com/person/ted-sarandos/" title="Ted Sarandos" class="company-link">Ted Sarandos</a>. “We’re moving closer and closer to a more normalized output schedule now—series a little more on track than film—but neither fully, fully recovered,” the executive told analysts today (Oct. 17) during Netflix’s third-quarter earnings call. Nevertheless, the streaming giant reported a 15 percent jump in revenue to $9.8 billion for the July-September quarter, beating Wall Street’s expectations, and added 5 million new subscribers during the quarter, bringing its total membership across pricing tiers to 282.8 million.</p> <section class="wp-block-observer-newsletters observer-newsletters--in-content"> <form class="newsletters-block__container" method="post" action="#" id="newsletter-67426831d4c287.95530807" data-form="subscribe-newsletter" data-recaptcha-key="6LexvRggAAAAAF1HvCWrHtG4UAa7m0WIdyIgstAo" data-form-action="https://observer.com/newsletter-subscribe.json"> <div class="observer-newsletters__in-content-icon"> <svg fill="none" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 51 51" width="50" height="50"><path d="M18.124 15.961C23.25 8.783 30.096 4.967 33.682 7.305a4.04 4.04 0 0 1 1.013.97c0 .028 8.3 16.017 8.3 16.017l4.634 2.989a6.39 6.39 0 0 1 1.793 1.732c.472.684.798 1.45.96 2.253.161.804.154 1.63-.02 2.432a6.075 6.075 0 0 1-.995 2.24l-.209.291c-.977 1.355-2.475 2.288-4.17 2.598a6.827 6.827 0 0 1-4.883-.943L32.662 48.32c-1.095 1.285-3.197 2.564-5.792 1.059a3.834 3.834 0 0 1-1.15-1.093 3.63 3.63 0 0 1-.587-1.444 3.763 3.763 0 0 1 .008-1.55 3.85 3.85 0 0 1 .635-1.427l6.556-9.208s-15.5-1.174-15.557-1.196a3.812 3.812 0 0 1-1.35-.552c-1.842-1.19-2.502-3.688-1.865-7.035.573-3.082 2.2-6.572 4.564-9.914Zm29.349 19.182.208-.292c.334-.467.567-.992.687-1.545a4.09 4.09 0 0 0 .012-1.678 4.18 4.18 0 0 0-.665-1.555 4.407 4.407 0 0 0-1.239-1.193l-4.002-2.592-5.282 7.405 4.002 2.592a4.64 4.64 0 0 0 1.624.655c.581.114 1.18.119 1.764.013a4.65 4.65 0 0 0 1.634-.631 4.42 4.42 0 0 0 1.257-1.179Zm-20.03 9.809a1.96 1.96 0 0 0-.324 1.528c.108.53.433.998.904 1.3.472.302 1.05.413 1.608.31A2.158 2.158 0 0 0 31 47.23l7.42-10.405-2.983-1.93-.788-.06-7.205 10.117Zm7.832-12.009 5.757-8.072-5.491-10.657c-.533 2.993-2.091 6.55-4.582 10.04-2.49 3.49-5.386 6.18-8.108 7.758l12.424.931ZM18.188 31.66c2.768-.171 7.275-3.143 11.092-8.497s5.056-10.42 4.205-12.94a2.354 2.354 0 0 0-.877-1.185 2.55 2.55 0 0 0-1.44-.47c-2.746 0-7.42 2.989-11.347 8.497-2.212 3.099-3.823 6.34-4.263 9.175-.863 5.42 2.63 5.42 2.63 5.42Z" fill="#000"/><path d="M25.364 16.165a5.726 5.726 0 0 1 2.148.01c.708.14 1.38.412 1.976.8.11.073.204.166.276.272a.941.941 0 0 1 .14.73.947.947 0 0 1-.158.347.998.998 0 0 1-.285.263 1.047 1.047 0 0 1-.767.133 1.046 1.046 0 0 1-.364-.15 3.572 3.572 0 0 0-1.25-.503 3.648 3.648 0 0 0-1.355-.01 3.574 3.574 0 0 0-1.257.486c-.381.238-.71.546-.966.906s-.436.763-.528 1.189a3.152 3.152 0 0 0-.01 1.29c.086.427.26.834.51 1.197.25.363.574.675.952.92a.972.972 0 0 1 .382.48c.07.194.074.405.01.602a.969.969 0 0 1-.37.49 1.048 1.048 0 0 1-.601.186 1.026 1.026 0 0 1-.58-.165 5.305 5.305 0 0 1-2.01-2.363 4.999 4.999 0 0 1-.29-3.028 5.165 5.165 0 0 1 1.527-2.67 5.592 5.592 0 0 1 2.83-1.412h.04Zm-8.491-6.914h-.098c-.25 0-.493-.088-.679-.248a.95.95 0 0 1-.329-.617l-.782-7.234a.919.919 0 0 1 .21-.725c.083-.1.188-.185.306-.247a1.05 1.05 0 0 1 1.14.105.974.974 0 0 1 .36.668l.776 7.24a.933.933 0 0 1-.222.707c-.17.199-.414.325-.682.351ZM3.771 7.763c.149-.214.38-.363.644-.414.264-.052.538-.002.764.138l7.06 4.41a.974.974 0 0 1 .396.482.922.922 0 0 1 .014.611.969.969 0 0 1-.376.496 1.05 1.05 0 0 1-.613.182 1.07 1.07 0 0 1-.58-.155l-7.06-4.41a.961.961 0 0 1-.415-.622.928.928 0 0 1 .166-.718ZM1.61 19.54l8.214-1.406c.265-.045.538.011.759.158.221.146.372.37.42.622a.93.93 0 0 1-.166.723c-.154.21-.389.354-.654.4l-8.207 1.405h-.18c-.258.007-.51-.08-.703-.243A.933.933 0 0 1 .97 19.88a1.03 1.03 0 0 1 .646-.358l-.005.017Z" fill="#000"/></svg> </div> <div class="observer-newsletters__in-content-inner"> <header class="newsletters-block__header"> <h2 class="newsletters-block__title"> Sign Up For Our Daily Newsletter </h2> </header> <div class="newsletters-block__form"> <input type="hidden" name="action" value="subscribe_newsletter"> <input type="hidden" name="newsletters[]" value="newsletter-daily" id="newsletter-daily"> <div class="newsletters-block__fields wp-block-button"> <input class="newsletters-block__input" aria-label="Email Address" placeholder="Email Address" type="email" name="email" required=""> <button class="wp-block-button__link in_article_single_newsletter_button" type="submit"> Sign Up </button> </div> <p class="newsletter-block__success"> Thank you for signing up! </p> <p class="newsletter-block__error"></p> <p class="newsletters-block__disclaimer"> By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. </p> </div> <a href="https://observer.com/subscribe/" class="newsletters-block__see-all in_article_single_newsletter_see_all_link"> See all of our newsletters </a> </div> </form> </section> <p>Quarterly net income came at $2.3 billion, up from last year’s $1.6 billion. The streaming giant expects its full-year revenue to grow by 15 percent, the high end of its previously issued guidance. The company said its viewership engagement increased to around two hours a day per paid membership. Netflix plans to stop disclosing quarterly subscriber features in 2025 and instead focus on reporting financial metrics.</p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_1" id="observer_article_instream_mobile_1"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_1" id="observer_article_instream_dsk_1"></div> <p>Netflix hits like <em>Emily in Paris</em>, <em>Cobra Kai</em> and <em>Outer Banks</em> were originally scheduled for earlier in 2024 but have seen later release dates due to <a href="https://observer.com/2023/12/hollywood-strikes-end-sag-ratify-studio-contract/" data-lasso-id="2624103">the 2023 actors’ and writers’ strikes,</a> according to Sarandos, who described the company’s lineup during the first half of the year as “much lumpier than we’d like.” The streamer’s output became more regular in the third quarter and is on track to be “largely back to normal,” he said.</p> <h3>Netflix stays the course on compensation models and bundling stance</h3> <p>Reiterating similar comments made by Netflix’s content chief <a href="https://observer.com/person/bela-bajaria/" title="Bela Bajaria" class="company-link">Bela Bajaria</a> earlier this month, Sarandos told analysts Netflix has no plans to change <a target="_blank" target="_blank" rel="noopener" href="https://www.hollywoodreporter.com/business/business-news/netflix-not-changing-compensation-pays-creatives-1236029495/" data-lasso-id="2624104">its current compensation model.</a> Paying talent upfront instead of based on the success of their content is a strategy that Netflix “pioneered,” he said, adding that the company is open to offering more bespoke deals for interested parties but that such arrangements rarely occur. “We like our talent model, and talent likes our model.”</p> <p>Netflix is also staying steadfast on abstaining from streamer bundles, a technique that has become popular amongst its competitors. “I get that it’s a comfortable business model for legacy media companies and given the narrow scope of the libraries on these services and the fairly limited engagement, it makes sense for them,” said Sarandos. Instead, Netflix will focus on bolstering its package of series, films and games, said the executive, who noted the streamer’s emphasis on new content like unscripted shows, competition series and live events.</p> <p>The Netflix head is, however, open to eventually embracing new technologies like A.I. Despite uncertainty surrounding how A.I. will impact media, Sarandos lauded the fact that “entertainment and technology have worked hand in hand throughout the history of time.” More experimentation will be needed before the tech can actually be put to use, he said. “Any tool that can enhance the quality, make [shows and films] better, is something that is going to actually help the industry a great deal.”</p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_2" id="observer_article_instream_mobile_2"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_2" id="observer_article_instream_dsk_2"></div> </p> <img itemprop="image" src="https://observer.com/wp-content/uploads/sites/2/2024/10/GettyImages-1246580132.jpg?quality=80&w=970" alt="Netflix Added 5M Subscribers in Q3 Despite Lingering Effects of Hollywood Strikes" style="display:none;width:0;"> </div> <footer class="entry-meta"> </footer> </article> <div class="breadcrumbs"> <span class="before-text"> Filed Under:</span> <a href="https://observer.com/business/" aria-label="Read articles filed under Business">Business</a>, <a href="https://observer.com/streaming/" aria-label="Read articles filed under Streaming">Streaming</a>, <a href="https://observer.com/media/" aria-label="Read articles filed under Media">Media</a>, <a href="https://observer.com/person/bela-bajaria/" aria-label="Read articles filed under Bela Bajaria">Bela Bajaria</a>, <a href="https://observer.com/person/ted-sarandos/" aria-label="Read articles filed under Ted Sarandos">Ted Sarandos</a>, <a href="https://observer.com/tag/earnings/" aria-label="Read articles filed under Earnings">Earnings</a>, <a href="https://observer.com/company/netflix/" aria-label="Read articles filed under Netflix">Netflix</a> </div> <div class="next-container"> <ul> <li> <a class="more-from" 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