As Netflix prepares to release its fourth-quarter earnings report on Thursday, shareholders are eager to learn more about the company’s new ad-supported service and its potential impact on revenue. In an effort to boost revenue, Netflix has recently introduced a lower-priced tier with advertisements and hinted at new strategies for combating password sharing.
Wall Street analysts are expecting the company to report earnings per share of 45 cents and revenue of $7.85 billion. Additionally, they predict that Netflix will add 4.57 million paid subscribers globally, which is in line with the company’s own projection. In the previous quarter, Netflix reported that it was “very optimistic” about its new advertising business and expects membership to grow gradually over time.
However, the company has also announced that it will no longer give subscriber guidance, instead focusing on revenue growth as the primary top-line metric. Analysts will be paying close attention to the earnings report to see if the new ad-supported service is resonating with consumers and contributing to this revenue growth.