Netflix reported second-quarter revenue and earnings yesterday. Revenue rose 13 percent year over year to $12.56 billion, driven by membership growth, higher subscription prices and increased advertising revenue. Earlier this year, the streaming giant raised prices across all of its subscription plans.
Net income reached $3.40 billion for the quarter, up from $3.13 billion a year earlier.
Looking ahead, Netflix expects third-quarter revenue to increase 12 percent and said its full-year 2026 outlook remains in line with previous guidance.
Co-CEO Ted Sarandos pushed back on reports suggesting second seasons attract significantly fewer viewers than first seasons, saying Netflix has not seen any material decline in viewership between seasons.
The company also announced it will reduce the frequency of its audience disclosures, shifting from twice-yearly to annual viewership reports beginning next year.
Netflix highlighted live programming as a major driver of engagement, noting that live events accounted for six of its 10 biggest new-member sign-up days over the past five years. Live sports, in particular, continue to attract premium advertising dollars, an increasingly important revenue source as subscriber growth moderates.
The company reiterated that it expects advertising revenue to roughly double this year, reaching about $3 billion. However, Netflix stock dropped over 8 percent in after-hours trading.
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