Written by Kianna Best on Oct 18, 2024. Posted in General Interest

Netflix shows growth across the board in Q3 reports

Netflix has added 5.1 million subscribers as reported in their Q3 findings, growing on the previous quarter, delivering above Wall Street predictions. This has sent the streamer’s total global paid subscriber count to 282.72 million. Netflix has reported a total revenue earning for the July to September quarter of USD9.825 billion with earnings per share at USD5.40.

“Engagement on Netflix is healthy: around two hours a day per paid membership on average, despite the impact of paid sharing,” a letter to Netflix shareholders stated on Thursday’s Q3 announcement.  “When you isolate owner households (which excludes the impact of paid sharing), view hours for those owner households rose year over year in the first three quarters of 2024.”

Netflix has seen significant growth across all facets of the streaming structure, with the ad-tier membership jumping 35% quarter over quarter. This service is set to be launched in Canada for the upcoming quarter and extensively in 2025. The streamer’s reports however noted their “Basic” tier plan will be phased out in Brazil in Q4 after the elimination of the package in the US and France.

“Our ads plan allows us to offer a lower price point for consumers, which is proving to be popular: in Q3, it accounted for over 50% of sign-ups in our ads countries and membership on our ads plan grew 35% quarter over quarter,” the letter added. “We’re on track to reach what we believe to be critical ad subscriber scale for advertisers in all of our ads countries in 2025, creating a strong base from which we can further increase our ad membership in 2026 and beyond. We’re also pleased with the engagement on our ads plan with view hours per membership similar to engagement on our standard plan in our 12 ads countries.”

In 2022, Netflix saw sign of a slowdown, kicking into gear a number of measures to rectify the decline, include their new affordable packages, as well as cracking down on password sharing that saw a significant addition to their subscriber count. Whilst the US has yet to see any price increases,  price hikes in regions such as Europe, the Middle East, Africa as well as in Japan have taken place, the streamer has reported a fortuitous Q3.

Projects such as the return of Emily in Paris as well as newcomer successes like Nobody Wants This, Baby Reindeer and The Perfect Couple have contributed to rising viewer counts. Looking forward to 2025, upcoming projects like the second season of hit show Squid Games and efforts to ramp up their live sports division with the much anticipated Jake Paul vs Mike Tyson boxing match are sure to see continued performance.

Planning for Q4, Netflix expects to see revenue of USD10.1 billion on earnings per share of USD4.23 or profit of USD1.8 billion. Forecasts for subscriber numbers will no longer be reported for the coming quarters.

Images courtesy of Netflix