THB #304a: Netflix Q4 2022

I don’t know what to tell you.

As usual, the response to a Netflix quarterly is irrational.

After explaining last quarter that they weren’t going to prioritize sub growth, the only really good number here is… sub growth.

They added 7.66 million subscribers, most notably in Europe (EMEA), where they added 3.2 million. U.S. is still flat, under 1 million subs added. Europe had 1.2 million ads. Both Latin America and Asia Pacific added 1.8 million.

On the flip side, Average Revenue Per User (ARPU) and Revenue is down in all 4 regions. And overall revenues are down $74 million from last quarter and up only 1.9% ($143m) from this quarter last year, when, as you may recall, the company came tumbling down.

We’ll see if there are any answers (or even any questions) in “the call” about what this specifically means. Is it that the ad-level offering is cannibalizing non-ad levels and that they haven’t made up for it with ads yet? Or are they at a place where “even” is really the best that can be …