Netflix has started 2024 on a strong footing, announcing that it added over 13 million subscribers in the final quarter of 2023 – a surge that significantly exceeds expectations.
It is the streaming service’s strongest quarterly performance since the outbreak of the coronavirus pandemic and brings the total number of subscribers to 260.28 million, almost 13% more than a year ago. The gains are largely attributed to a policy that restricts account sharing, forcing more individuals to set up their own Netflix accounts.
The American platform reported $8.8 billion (€8.07 billion) in holiday season revenue (+12.5%). The results were released on Tuesday and far exceeded analysts' expectations, with performance predicted to go from strength to strength in the current quarter.
There’s plenty of room for growth in the streaming sector, according to joint CEOs Ted Sarandos and Greg Peters. They argue that the results will allow the platform to keep offering more value to consumers, creators, and shareholders and highlighted the success of the cheaper, ad-supported subscription plan projected to generate "long-term profits".
Related News
- Sex, drugs and the Flemish coast: Belgian series 'Knokke Off' in Netflix global top five
- An end to country restrictions for streaming within the EU?
The online video service pioneer already gained nearly 9 million subscribers during the summer primarily due to its stricter password sharing policy.
Notably, the new cheaper, ad-inclusive subscription plays a significant role. In the 12 markets where it’s available, 40% of new customers have selected it. Netflix is gradually phasing out its basic ad-free subscription option, making ad-free viewing a more expensive option.
The final seasons of popular series like ‘Sex Education’ and ‘The Crown’, as well as other productions like ‘Berlin’ and ‘Squid Game: The Challenge’, have been audience magnets. Netflix continually updates its offering of movies and series to attract new clients. Among the most-watched titles last quarter include the post-apocalyptic thriller ‘The World After Us’ and a documentary about football legend David Beckham.
And whilst the film industry was paralyzed for half a year because of strikes by writers and actors (who were demanding salary increases and safeguards in the field of artificial intelligence), streaming giants assured their businesses were minimally impacted, allowing them to make savings in the process.
