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Netflix adds 2.2 million subs from APAC in Q3 2021
Mumbai: OTT Giant Netflix announced its results for Q3 2021. The company grew its revenues by 16 per cent to $7.5 billion year-on-year and added as many as 4.4 million paid subscribers globally bringing its total subscriber base to 214 million subscribers.
For the second consecutive quarter, the Asia-Pacific (APAC) region was the largest contributor to Netflix’s subscriber growth with 2.2 million subscribers coming from this region alone. The streaming giant added 1.8 million subscribers from the Europe, Middle East, and Africa (EMEA) market.
The company forecasted 8.5 million subscriber additions for Q4 2021.
Netflix also reported that ‘Money Heist- Season five’ and ‘Sex Education- season three’ were two of its biggest returning shows of the quarter reaching 69 million and 55 million households, respectively. Korean drama ‘Squid Game’ became its “biggest TV show ever” by reaching 142-million-member households in its first four weeks of launch. The show has ranked #1 in Netflix’s top ten shows across 94 countries including the US.
The streaming giant said it will shift its metrics to ‘hours viewed’ for its titles rather than the ‘number of accounts that choose to watch them’ later this year.
“There is some difference in rankings but we think engagement, as measured by hours viewed, is a slightly better indicator of the overall success of our titles and member satisfaction,” it said on Wednesday. “We will start to release title metrics more regularly outside of our earnings report so our members and the industry can better measure success in the streaming world.”
Barring unforeseen events that result in large-scale production shutdowns the company anticipates a more normalised production slate for 2022 with even more originals releasing than 2021.
During Q3, Netflix announced its agreement to acquire the Roald Dahl Story Company pending regulatory approval and acquired video game developer Night School Studio.
Netflix also reported that when Facebook experienced a global outage for several hours on 4 October, the streaming platform saw a 14 per cent increase in engagement during that time period.
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
