Streaming giant Netflix is set to release its first-quarter earnings after the opening bell on Tuesday, thereby providing answers regarding pressing subjects such as the company’s recently launched ad-supported tier and its crackdown on password sharing.
According to Bloomberg consensus estimates, Netflix is expected to report quarterly revenue of $8.18 billion with earnings per share (EPS) of $2.86. The streaming service is expected to have added 2.3 million net new subscribers.
Netflix has set a target to reach 40 million new subscribers through its ad-supported tier by the end of 2023. This estimate has been labeled by critics as “increasingly unrealistic”, particularly due to the increasing competitiveness of the streaming market.
Jamie Lumley, a sector analyst at Third Bridge Group, stated during an interview on Monday that Netflix is more likely to add between 10 and 20 million new subscribers through its new ad-supporting offering.
Regarding its password crackdown, Netflix continued implementing its plan in test countries Chile, Costa Rica, and Peru while rolling out the project in new territories including Canada, New Zealand, Portugal, and Spain.
