Streaming
Netflix Surpasses 300 Million Subscribers, Shatters Financial Forecasts
By the close of 2024, Netflix had achieved a monumental milestone, amassing over 300 million subscribers globally. The streaming giant also reported quarterly earnings and net income that outperformed market predictions.
In late 2022,Netflix introduced a budget-kind ad-supported subscription tier,aiming to drive significant revenue growth from this initiative in the current year.
AFP
Netflix has once again shattered expectations by adding close to 19 million new subscribers in the final quarter of 2024, pushing its global subscriber base to an extraordinary 301.6 million. This milestone cements its status as the undisputed leader in the streaming sector.
The California-based company has seen a notable surge in its user numbers since 2023, driven by stricter enforcement of its password-sharing policies and an expanded lineup of live events, especially in the sports arena.
Live sports and Blockbuster Series
During the holiday season, Netflix streamed live coverage of two NFL games and a much-hyped boxing match featuring YouTube sensation Jake Paul against the iconic mike Tyson. additionally,the platform dropped the eagerly awaited second season of the South Korean hit series “Squid Game” on December 26.
however, Greg Peters, co-CEO of Netflix, clarified during an analyst call that the influx of new subscribers drawn by these events and the “Squid Game” sequel was only a fraction of the total growth. “The overall service offering is what fueled the substantial increase we observed this quarter,” he emphasized.
Netflix achieved
Netflix reported a quarterly revenue of $10.2 billion, marking a 16% increase, with a net profit of $1.9 billion. Both figures slightly surpassed market expectations. Following the proclamation, the company’s stock surged over 14% in after-hours trading on the New York Stock Exchange.
Shifting Focus to Engagement
Despite significant growth in its subscriber base, Netflix announced earlier this year that it would stop reporting subscriber numbers quarterly. Instead, the company will prioritize metrics related to audience engagement, such as time spent watching content.
Strategic Price Adjustments
Analysts interpret this move as a strategy to boost revenue and profit margins. Netflix has already implemented price hikes in the U.S., with the “Standard” plan now priced at $18, up from $15.50. The ad-supported plan, introduced in late 2022, has also increased to $8 per month from $7. Greg Peters, Netflix’s co-CEO, commented, “We believe this pricing remains highly attractive given the entertainment value we offer.”
The company anticipates substantial revenue growth from its ad-supported tier this year. Peters noted,“In Q4,over 55% of new sign-ups in eligible markets were for the ad-supported plan. Our ad revenue doubled in 2024, and we aim to double it again this year.”
Investing in Live Content
To attract both advertisers and viewers, Netflix is heavily investing in live programming, especially sports. In January 2024, the company secured a $5 billion, ten-year deal with WWE. More recently,it announced an exclusive partnership to stream the FIFA Women’s World Cup.
Record-Breaking Live Events
Despite some technical challenges, the Jake Paul vs. Mike Tyson boxing match became the most-watched live sports event on the platform. Additionally, Netflix’s broadcast of NFL Christmas games drew over 24 million viewers. Mike Proulx, Forrester’s research director, highlighted, “Live events with massive audiences are a magnet for major brands.”
Netflix’s focus on live sports and high-profile events underscores its commitment to diversifying its content offerings and capturing a larger share of the streaming market.
By 2025, Netflix is set to revolutionize its advertising landscape, offering a broader array of ad formats, strategic partnerships, and advanced technical tools for precise audience targeting.This shift marks a significant evolution in the platform’s approach to monetization.
Ross Benes, a prominent analyst at Emarketer, highlights that advertising and direct revenue streams, once dismissed by Netflix, have now become central to its strategy. Benes suggests that this pivot could lead to unexpected moves, such as Netflix acquiring sports broadcasting rights, despite earlier statements to the contrary. This potential shift aligns with the platform’s broader goal of diversifying its content offerings and revenue sources.
“Breaking Updates”
Stay informed with the latest developments! “Tribune de Genève” delivers two daily updates straight to your inbox,ensuring you’re always in the loop about local,national,and global events.
explore More Newsletters
AFP
found an error? Let us know.
