Netflix, after facing a massive loss of subscribers in the first half of this year is now showing strong signs of rebounding, as the online streaming giant showed clear improvements in expanding its user base in the third quarter.
According to a report published in Associated Press, Netflix gained 2.4 million new users in the period between July-September, a strong bounce back from the first half where it lost 1.2 million customers.
Netflix management believes that the streaming giant will garner more customers ahead of the launch of a cheaper version of the video service.
Netflix shares rise
According to the report, Netflix now has 223 million subscribers under its belt; the highest for any OTT platform in the world, as Disney has 221 million users.
"Thank God, we are done with shrinking quarters. We are back to positivity," said Netflix co-CEO Reed Hastings.
Driven by the rise in subscribers, Netflix's revenue climbed 6 percent from last year to $7.93 billion.
After the revelation of new figures on customer base, shares of Netflix climbed 14 percent, despite considering the fact that stock has still lost more than half its value so far this year.
Netflix still has a lot of room to grow and capture the share in a price-sensitive market," said Investing.com analyst Haris Anwar.
High tariff affecting Netflix's growth in developing countries
Meanwhile, Netflix is still struggling to grow rapidly in countries like India due to the streaming giant's high tariff. Moreover, Netflix is not offering an annual plan for customers, which makes it difficult for people in developing countries to enter the world of global content offered by the streaming giant.
On the other hand, popularity of OTT platforms like Amazon Prime Video, Disney+Hotstar, Sony Liv, Zee5 and Sun Nxt are rising in India due to the availability of affordable packages.