<\/p>\n
Netflix on Tuesday said its third quarter revenue jumped 17% to $11.5 billion, powered by the hit animated film, \u201cKPop Demon Hunters.\u201d <\/p>\n
The Los Gatos-based streamer reported net income of $2.5 billion during the third quarter, up 8% from the same period a year ago but well below the $3 billion analysts had projected, according to FactSet. <\/p>\n
Revenue was in line with analyst estimates and was boosted by increased subscriptions, pricing adjustments and more ad revenue. <\/p>\n
The company said it incurred a $619 million expense related to a dispute with Brazilian tax authorities. <\/p>\n
\u201cAbsent this expense, we would have exceeded our Q3\u201925 operating margin forecast,\u201d Netflix said in a letter to shareholders on Tuesday. \u201cWe don\u2019t expect this matter to have a material impact on future results.\u201d<\/p>\n
Netflix shares, which closed Tuesday at $1,241.35, fell 5% in after hours trading.<\/p>\n
As it continues to dominate the streaming market with more than 301 million subscribers, Netflix has been investing in a diverse slate of content, including new movies <\/a>rolling out in the fourth quarter like Guillermo del Toro\u2019s \u201cFrankenstein<\/a>,\u201d as well as the final season of sci-fi hit \u201cStranger Things<\/a>\u201d and family-friendly games for the TV such as Boggle<\/a>. <\/p>\n \u201cKPop Demon Hunters\u201d has garnered more than 325 million views in its first 91 days on the service. The movie, about a trio of powerful singers who hunt demons, was released in June. <\/p>\n It bested 2021 action film \u201cRed Notice,\u201d which had been previously its most watched film in its first 91 days on Netflix with 230.9 million views. <\/p>\n On Tuesday Netflix also announced a licensing deal<\/a> with toy makers Hasbro Inc. and Mattel Inc. to make toys including dolls, action figures, youth electronics and other items related to \u201cKPop Demon Hunters.\u201d <\/p>\n Popular TV shows launched in the third quarter include the second season of the Addams family spin-off series \u201cWednesday\u201d and the second season of drama \u201cMy Life With the Walter Boys.\u201d <\/p>\n The company said in the fourth quarter it expects revenue to grow another 17% due to growth in subscriptions, pricing and ad revenue. <\/p>\n For the full year, Netflix is forecasting revenue of $45.1 billion, up 16%, and said it is on track to more than double it ads revenue in 2025. <\/p>\n Like other entertainment companies, Netflix has been taking steps to diversify its business in a challenging landscape, as production costs<\/a> for TV and movies increases and studios consolidate<\/a>.<\/p>\n \u201cWith entertainment industry employment becoming more precarious, Netflix is slyly pivoting its content strategy to rely more on live sports, YouTubers, creators and podcasters,\u201d said Ross Benes, a senior analyst with research firm Emarketer in a statement. <\/p>\n