Netflix subscriber adds expected to grow in Q3, but revenue may slow down: analyst
Wachiwit

Netflix (NASDAQ:NFLX) is set to report third-quarter results on October 18th and while the streaming media giant is looking towards its advertising-supported tier to grow subscribers, it may have seen positive momentum return, investment firm Monness, Crespi, Hardt said on Friday.
Analyst Brian White, who has a neutral rating on Netflix (NFLX), said he believes the company added 1M subscribers in the third-quarter to finish the period at 221.6M subscribers. 
However, revenue growth is expected to clock in at $7.834B, up just 5% year-over-year and a 2% sequential decline, compared to the four-year average of 4% growth. 
Netflix (NFLX) previously said it expects to generate $7.838B in sales, along with $1.255B in operating income and $2.14 in earnings per share.
"Although Netflix continues to deliver a strong slate of content, and the stockâs valuation has become unassuming after a sharp decline, the companyâs business is under siege on multiple fronts, the time necessary to successfully monetize new initiatives is unclear, and we believe the darkest days of this economic downturn are ahead of us," White wrote in a note to clients.
The analyst added that the past year has been a "nightmare" for Netflix (NFLX) and the near-term future is not much better, with uncertainty stemming from a crowded streaming market, high penetration in certain geographies and a weak global economy.
But the new advertising-supported tier, priced at $6.99 per month and available in the U.S. and 11 other markets, including the U.K., Canada and France, is showing that the company is adapting to a "more challenging world," White added.
Netflix (NFLX) recently reached viewing measurement deals with both DoubleVerify and Integral Ad Science.