You will be redirected back to your article in seconds

‘Stranger Things 3’ Helping Fuel Netflix Q3 Subscriber Lift, Analysts Suggest

The Upside Down appears to be helping Netflix’s subscriber numbers bounce back for the September quarter after the company’s big miss in customer growth projections for Q2.

In a report Monday, Bank of America Merrill Lynch cited data from research firm Sensor Tower finding that Netflix’s mobile-app downloads so far in the third quarter of 2019 are up 18% year over year and have increased around 30% sequentially. In the U.S., the company’s app downloads are up 6% versus the prior-year quarter and +13% from Q2 2019, while international app downloads are 21% higher annually and 34% sequentially.

The Q3 lift in Netflix app downloads was “likely aided” by the July 4 release of “Stranger Things” Season 3 as well as other programming, BoFA said in the research note.

The new data led Netflix stock to climb as much as 3.6% in early trading Monday before pulling back to close up 1.44% for the day.

Analyst research has previously pegged “Stranger Things” Season 3 as poised to be a subscriber magnet. A Cowen & Co. survey released in July found that 13% of former Netflix members said they planned to resubscribe to the service in order to watch S3 of the ’80s-set paranormal show while nearly 5% of consumers who weren’t current Netflix subscribers said they planned to subscribe to watch it.

Netflix also has bragged about the performance of “Stranger Things 3,” although its in-house metrics are unverifiable by third-party services. The company claimed that 40.7 million accounts watched the show in the first four days of its debut, marking Netflix’s biggest-ever audience for a movie or TV series in a four-day window.

That said, Netflix is bracing for the impact of significant new competitors on its business. That includes the scheduled Nov. 12 launch of Disney Plus as well as Apple TV Plus, followed by WarnerMedia’s HBO Max and NBCUniversal’s streaming play in 2020.

The upbeat mobile-download stats come after Netflix badly missed sub forecasts for the second quarter of 2019, posting its first net U.S. customer decline since 2011 while growth slowed considerably overseas. The company added 2.7 million subs worldwide in Q2, almost half as many as the 5 million it had projected.

Popular on Variety

More Digital


    'Stranger Things 3' Is Most-Watched Season to Date, Netflix Says

    The Upside Down delivered upside for Netflix in the third quarter: “Stranger Things” season 3 was the most-watched season of the series to date, according to the streamer. In the first four weeks of release, “Stranger Things” season 3 was watched by 64 million member households, Netflix said in the Q3 letter to shareholders. The [...]

  • Stranger Things Season 3

    Netflix Undershoots U.S. Subscriber Adds for Q3, Beats Profit Forecast

    Netflix fell slightly short of its U.S. subscriber forecast in the third quarter — and projected lower Q4 subscriber growth than Wall Street was expecting as competition looms from Apple and Disney. Still, the company reported solid gains, announcing a Q3 record for paid subscriber additions and revenue, and handily topped analyst forecasts for profit. [...]

  • Despacito Luis Fonsi Daddy Yankee

    'Despacito' Tops Vevo's Most-Watched Videos of the Past Decade Chart

    In celebration of its 10-year anniversary, Vevo today announced its Top 10 lists of the decade’s most-watched music videos. Not surprisingly, the Most-Watched Music Video accolade goes to Luis Fonsi’s “Despacito” (featuring Daddy Yankee), with 6.4 billion views since its release in early 2017. The second most-viewed video is Mark Ronson’s “Uptown Funk” (featuring Bruno [...]

  • Dead To Me

    Streaming Shows Nearly Doubled in Last Year, Boosting Los Angeles TV Production

    Television production in Los Angeles has received a major boost from streaming shows, according to a new report from the permitting organization FilmLA. The number of new digital projects nearly doubled between the 2017-18 and 2018-19 development cycles, increasing approximately 85.3% in a year. The number of digitally distributed original series in production has increased by [...]

  • Shonda Rhimes

    Shonda Rhimes Inks Podcast Deal With iHeartMedia

    Hit-making TV writer and producer Shonda Rhimes is jumping into the podcast game in a much bigger way. Rhimes’ Shondaland production company announced a three-year pact with iHeartMedia to launch Shondaland Audio, which will produce a slate of original podcasts to be released as part of the iHeartPodcast Network. Rhimes will oversee development and Sandie [...]

More From Our Brands

Access exclusive content