Rome, 23 October 2024 – Netflix closed the third quarter of 2024 with $9.825 billion in revenue, up 15% from the same period last year and exceeding initial expectations. The operating margin also took a leap forward, reaching 30%, compared to 22% in the same quarter in 2023. These positive results, presented on October 17thproject a promising 2024, with the company expected to end the year with 15% revenue growth and a 27% operating margin.
International programming entertains users for two hours a day
As reported by Netflix, much of the credit for this success also goes to the new programming, which saw the debut of shows such as The Perfect Couple (which recorded 65.2 million views), Nobody Wants This e Tokyo Swindlersas well as the return of beloved series like Emily in Paris e Cobra Kai. Even on the cinematographic front, Netflix has launched films that have achieved some success, including Beverly Hills Cop: Axel F e Rebel Ridge. With over 600 million viewers worldwide, the platform aims to offer increasingly varied and local programming, with content designed for different cultures and languages. The success of titles in Japan, Korea and India is proof of this, as is the growing interest in original European and Latin American productions. Despite the related changes to sharing paid accounts, hours of viewing per subscriber increased in the first three quarters of 2024, reaching approximately 2 hours of viewing per member per day.
Subscription prices are increasing and the number of users choosing the proposal with Adv is growing
Earlier this month, Netflix raised prices in some countries in the EMEA region and in Japan, and starting last week it also applied the increase in Spain and Italy. Now, in fact, the rates are: standard with advertising breaks which has gone from 5.49 to 6.99 per month; the standard without ADV from 12.99 to 13.99; while the premium, with the possibility of having up to 4 users and 6 downloads as well as a higher audio and video resolution, went from 17.99 per month to 19.99 with an increase of 24 euros per year. Meanwhile, Netflix eliminated the Basic plan in the US and France in the previous quarter, and the same move is expected in Brazil in the fourth quarter. Nearly two years after the launch of advertising plans, which offer users a reduced price in exchange for viewing ads, in Q3 2024, more than 50% of signups occurred through this option. Additionally, advertising plan enrollment saw 35% growth compared to the previous quarter.
The financial perspectives for 2025 and the expected programming for the coming months
For 2025, Netflix plans to continue on this growth path, focusing both on increasing subscribers and expanding its services, including gaming and advertising. The company expects revenue growth of between 11% and 13%, with an operating margin of 28%. And looking at the programming for the next few months, In this regard, Netflix is releasing highly anticipated content, including the second season of Squid Game, the boxing matches between Jake Paul and Mike Tyson, and two exclusive NFL games on Christmas Day, featuring the Kansas City Chiefs against the Pittsburgh Steelers and the Baltimore Ravens against the Houston Texans.
