In the Q2 earnings interview, Ted Sarandos, Netflix’s Co-CEO, addressed the ongoing SAG-AFTRA and WGA strikes. He expressed that these strikes were not the desired outcome and shared a personal story about his father’s experience as a union electrician on strike. Sarandos emphasized Netflix’s constant efforts to negotiate with writers, directors, actors, and producers, hoping for a timely resolution.
Regarding the concern of content running out on Netflix, Sarandos indicated that the company has a robust slate of upcoming shows and movies from around the world. However, he stressed the urgency to reach an agreement to move forward collectively as an industry.
Despite the strikes, Netflix’s Q2 earnings were strong, with an impressive addition of nearly 6 million global subscribers, bringing the total to 238.39 million. Netflix’s stock price also witnessed significant growth, nearing the $500 mark. The company’s preparation and strategic content planning allowed it to withstand the initial impact of the writers’ strike effectively, while traditional TV networks experienced disruptions.
Nevertheless, the combined effects of an actors’ strike and writers’ strike present new challenges for Netflix. The writers’ strike already halted production on “Stranger Things 5,” and the actors’ strike extended the shutdown to other U.S. and international productions. Additionally, Emmy campaigns have been suspended, and the fall film festivals, crucial for Netflix’s Oscar campaigns, may be affected.
While Netflix exceeded expectations on earnings, it fell short in revenue benchmarks for the quarter, reaching $8.187 billion from April to June. Quarterly earnings per share stood at $3.29, with an overall net income of $1.488 billion. However, the company projects a higher profit of $1.58 billion for the next quarter.
In conclusion, Sarandos assured that Netflix is committed to reaching an equitable agreement to end the strikes promptly. The company’s financial performance and growing subscriber base demonstrate its resilience, but potential delays in delivering popular shows could become a concern. The situation remains fluid, and both Netflix and the industry as a whole are working towards a resolution that allows them to move forward.