Netflix Sees Subscriptions' Surge

Leading streaming platform Netflix revealed, on Tuesday, that the platform gained more than 2 million subscribers in the latest quarter.

The latest surge in subscriptions eased the fears of investors of the platform's losing paying subscribers.  

The company said that the total subscriptions of the streamer reached 223 million subscribers worldwide, after recording new 2.4 million subscriptions.

It said: "After a challenging first half, we believe we’re on a path to reaccelerate growth."

"Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard - we estimate they are all losing money," the company added. 

In the same context, Netflix recorded a profit of $1.4 billion on revenue of $7.9 billion in the recent quarter.

The subscriber growth was motivated by the new subscription options released by the platform represented in debuting a subscription option subsidized by ads in November.

The new "Basic with Ads" subscriptions will be priced at $6.99 in the United States which means that they are three dollars less than a no-ads one.

Netflix Chief Operating Officer Greg Peters said: "The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry."

"Now streaming has surpassed both broadcast and cable for total TV time in the United States."

The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.

"We are looking at a very light ad load with no more than four to five minutes of ads per hour, and including some very tight frequency caps so that members don't see the same ad repeatedly."