Netflix Reports Growth Amid the Backdrop of Two Strikes
Summary
Netflix added millions of subscribers in the second quarter and saw a rise in revenue, the company said on Wednesday in an upbeat earnings report that came at a moment when the entertainment industry is dealing with dual strikes inspired in part by the economics of streaming. Netflix has been on the receiving end of much of the vitriol surrounding the strike, primarily from writers who say the economics of the streaming era have eroded their working conditions and hurt their overall compensation. During an investor conference call, Netflix’s co-chief executive, Ted Sarandos, did not directly answer how long the strikes could go on before the streaming service would run out of new content. “Netflix’s quarterly results demonstrated that the streaming company has a clear path to accelerate growth in both revenue and profit, and they’re executing it well,” Jesse Cohen, senior analyst at Investing.com, wrote in a report. “Long-term though, the strikes could create a scenario of massive churn and lower ad revenue for streaming companies,” said Scott Purdy, the U.S. national media industry leader at KPMG.