Netflix Subscriber Additions Likely Slowed, Growth Strategy In Focus

Reuters

By Harshita Mary Varghese

Oct 15 (Reuters) - Netflix could report its slowest subscriber additions in six quarters on Thursday as gains from a password-sharing crackdown ease, with investors looking for signs its nascent ad revenue business is accelerating.

The streaming giant likely added 4 million subscribers in the July-September period, according to analysts' estimates compiled by LSEG. Netflix originals such as "The Accident" and "The Perfect Couple" were among the top streamed titles in the U.S. during the quarter, Nielsen data showed.

As the pace of sign-ups slows, Netflix is trying to shift investor attention towards other performance measures including revenue growth and margins. It will stop reporting subscriber data from 2025.

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"Their focus is to continue to grow subscribers at a healthy clip while also leveraging their scale, ability to raise prices and increase advertising dollars," said Pivotal Research analyst Jeff Wlodarczak.

The company's ad-supported plan has been growing but Netflix does not offer details on the tier's financial performance and does not expect it to become a primary driver of growth until 2026.

This has raised some concerns about its growth trajectory.

"They're making less than a billion dollars a year in the U.S. on advertising, saying that doesn't make them look good," eMarketer television and streaming analyst Ross Benes said.

Some analysts have said the company needs to raise prices and phase out more of its ad free plans to nudge customers towards the tier with commercials as it usually brings in more revenue per user.

The company said in July last year it would stop offering the $9.99 a month basic plan without commercials to new users in the U.S. and the UK, and phase it out for existing subscribers.

Netflix charges $6.99 per month in the U.S. for the ad tier, while its standard plan without commercials is priced at $15.49 a month.

It has not raised the price of its standard plan since early 2022, while its ad-supported tier has been priced the same since its launch in late 2022.

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The company, which operates in more than 190 countries, is expected to report ad revenue of $242.7 million in the third quarter, according to the average of estimates from three analysts compiled by LSEG. Overall revenue is expected to grow 14.3%, a slightly slower pace than the previous three months, to $9.76 billion.

To attract more advertisers, the streamer is focusing on live events including sports. Netflix will air the highly anticipated Jake Paul vs. Mike Tyson boxing fight in November, followed by its first NFL games in December.

The second season of hit South Korean drama series "Squid Game", expected to release in December, could help the company draw subscribers in the last quarter of the year.

Netflix stock has risen 12.4% since it reported second-quarter results in July, compared with a 5% rise in the S&P 500 index .SPX.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Aditya Soni and Devika Syamnath)

(( HarshitaMary.Varghese@thomsonreuters.com ;))

Keywords: NETFLIX-RESULTS/ (PREVIEW, PIX)

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Global Smartphone Shipments Rise 5% In Q3, Apple Gains Share, Canalys Reports

Reuters

Apple

-0.68%

Oct 14 - Global smartphone shipments grew 5% in the third quarter of 2024, driven by persistent demand in emerging economies and the start of a replacement cycle in North America, China and Europe, underpinning a recovery in the market after a prolonged slump.

The July-September quarter marked the fourth consecutive quarter of growth in the smartphone market, research firm Canalys said in a report on Monday.

Apple reached record high third-quarter shipments, backed by strong demand for its older models, the report added.

WHY IT'S IMPORTANT

The smartphone market has been recovering as a series of artificial intelligence features and new releases prompt users to replace their devices after a months-long downturn following the pandemic.

Smartphone providers such as Apple and Samsung as well as various chipmakers have pinned high hopes on the market's resurgence amid intense competition.

KEY QUOTES

"Apple AAPL.O achieved its highest third-quarter volume to date and has never been closer to leading the global smartphone market in a Q3 than now," said Runar Bjørhovde, analyst at Canalys.

"The gap between the top five vendors has narrowed, intensifying the competitive landscape," Canalys analyst Le Xuan Chiew said.

CONTEXT

A shift towards premium models, along with an ongoing refresh cycle of devices purchased during the pandemic, is benefiting Apple, particularly in regions such as North America and Europe, Canalys said.

The new iPhone 16 is also expected to help Apple's sales in the fourth quarter and drive momentum into the first half of 2025.

BY THE NUMBERS

Samsung 005930.KS accounted for 18% of total smartphone shipments in the third quarter, narrowly defending its lead on Apple. iPhones made up 18% of shipments.

Xiaomi maintained its position as the third-largest smartphone vendor with 14% market share.

GRAPHIC

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(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shreya Biswas)

(( ArsheeyaSingh.Bajwa@thomsonreuters.com ; +91 8510015800; ))

Keywords: SMARTPHONE-TECH/

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Tsmc Third-Quarter Profit Seen Jumping 40% On Strong Ai Chip Demand

Reuters

Advanced Micro Devices

+0.98%

Intel

+2.56%

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Tim Cook-Led Apple Accused By NLRB Of Restricting Employee Advocacy On Social Media: 2nd Complaint Against iPhone-maker This Month

Benzinga

Apple

-0.68%

Tim Cook-led Apple Inc. is facing accusations from the U.S. National Labor Relations Board, or NLRB, for allegedly restricting its employees’ use of social media and Slack for advocating improved working conditions.

What Happened: The NLRB lodged a complaint against Apple on Thursday, alleging that the tech behemoth has imposed unlawful work rules related to the use of Slack.

The complaint also said that Apple terminated an employee for advocating workplace changes on the platform and created an impression of surveillance over employees’ social media activities, reported Reuters.

In its defense, Apple denied any wrongdoing and reaffirmed its commitment to fostering a positive and inclusive workplace. The company stated, “We strongly disagree with these claims and will continue to share the facts at the hearing.”

The complaint stemmed from a claim filed nearly three years ago by Janneke Parrish, who alleges Apple terminated her in 2021 for her role in employee activism.

Parrish used Slack and social media to advocate for permanent remote work, distribute a pay equity survey, and criticize the company.

If Apple does not reach a settlement with the NLRB, an administrative judge will conduct an initial hearing in the case in February.

The judge’s decision can be reviewed by the five-member labor board, and their rulings can be appealed in federal court.

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Why It Matters: This marks the second complaint the NLRB has filed against Apple this month.

The earlier one accused the company of mandating employees to sign illegal confidentiality, nondisclosure, and noncompete agreements, and of enforcing overly broad misconduct and social media policies.

This is not the first time Apple has faced scrutiny from the NLRB. Last November, the federal labor board accused Apple of not extending a benefits increase to unionized retail employees.

Cupertino has also faced increased unionization efforts at its retail stores, which could potentially impact the company’s stock and shareholder sentiment.

Check out more of Benzinga's Consumer Tech coverage by following this link.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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End Of An Era? Apple's 16-year-Old Accessory Is Out Of Stock Worldwide

Benzinga

Apple

-0.68%

In a move that could mark the end of an era for legacy technology, Apple Inc. has reportedly ceased production of its 16-year-old SuperDrive.

What Happened: The SuperDrive, an external CD/DVD drive, is now listed as sold out or unavailable in all countries on Apple’s online store, reported MacRumors.

The accessory, which was launched in 2008 alongside the original MacBook Air, has not been restocked, suggesting its discontinuation.

The SuperDrive, despite its outdated USB-A cable, was one of Apple’s longest-sold products. However, with the CD/DVD drive market becoming increasingly niche, Apple’s decision to stop selling the SuperDrive is not unexpected.

Customers requiring CD/DVD drives have other alternatives that do not necessitate a USB-C adapter for use with modern Macs.

The term SuperDrive was first coined by Apple in 1988 with the launch of its 1.44 MB 3.5-inch floppy drive.

The concept underwent significant evolution with the introduction of optical media in 2001, and by the mid-2000s, the SuperDrive was available as an option in almost all Mac models.

Apple did not immediately respond to Benzinga’s request for comments.

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Why It Matters: Over the years, Apple has phased out several key products and features, marking a shift in its product strategy.

The iPhone 13 mini, known for its compact 5.4-inch display, was discontinued in September 2024 due to low sales.

The 13-inch MacBook Pro with the Touch Bar, a once-innovative feature, was discontinued in late 2023 as Apple returned to traditional function keys.

The MagSafe Battery Pack and MagSafe Duo Charger, launched in 2021 and 2020 respectively, were also phased out following the transition to USB-C ports.

Apple has also replaced its leather accessories with eco-friendly FineWoven fabric but had to phase them out too due to some controversies. Other notable discontinuations include the iTunes Movie Trailers app and the Apple Music Voice Plan.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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