This week, Netflix announced financial results from another stellar quarter, further cementing its status as the most successful media company in Hollywood. The streamer reported $11.5 billion in total revenue and $3.2 billion in earnings for the third quarter.
This results in an enviable profit margin of 28%, representing a double-digit increase over Q2. Netflix co-CEO Greg Peters explained this success to investors by saying, “We recorded our best ad sales quarter ever. We’re now on track to more than double ad revenue this year.”
Netflix’s other co-CEO, Ted Sarandos, highlighted this summer’s success of KPOP DEMON HUNTERS, which has become the company’s most-watched movie of all time. The animated movie tells the story of a Korean pop group that fights demons.
It was originally produced by Sony and later sold to Netflix for $20 million. Sarandos said K-pop’s success proved Netflix’s ability to “create breakthrough hits and move the culture today”.
After a successful run on the streaming platform beginning on June 20th, Netflix offered its movie to theatres for a two-day run over the weekend of August 23rd and 24th. Despite the fact that it had already racked up many millions of views on Netflix, or perhaps because of this, it was the top-grossing theatrical movie of that weekend, when it earned an estimated $18M-$20, making it the highest-grossing Netflix film ever in theatrical box office.
However, Sarandos emphasized that this success does not signal a change to the company’s approach to theatrical releasing, reiterating that all its “first-run films” will be released exclusively on Netflix. The statement was clearly meant to pour cold water on those who have suggested a change in approach after Netflix’s recent dabbling in theatrical releasing. In fact, Sarandos made a point of saying that K-pop’s success in theatres was “because it was released on Netflix first.”