Netflix Q1CY24: Best results since 2020; 9.3 mn new subscribers acquired

Netflix has announced one of its best quarterly performances since the onset of the Covid-19 pandemic. The streaming company acquired 9.3 million new subscribers in the first quarter of calendar year 2024. This surge elevates its worldwide subscriber count to nearly 270 million, according to a report in The Times of India.

Additionally, it recorded $2.3 billion in net income, with revenue reaching $9.3 billion, marking a 15 per cent increase compared to the same period last year.

Netflix has surged back from a slowdown in 2021 and 2022, achieving its fastest growth rate since the early stages of the Covid-19 pandemic. Several factors contributed to Netflix’s success. The company attributed its strong quarter to high audience engagement with series such as Griselda, 3 Body Problem, and Avatar: The Last Airbender.

Moreover, the ad-supported tier, marking its inaugural year, experienced a 65 per cent surge in subscribers compared to the previous quarter. Notably, 40 per cent of new sign-ups in markets offering the ad tier chose this more affordable alternative. Netflix’s efforts to curb password sharing also played a role in the favourable quarterly outcomes.

Dan Lin, the newly appointed chairman of Netflix Films, aims to focus on elevating the overall film quality and producing a wider variety of movies to accommodate diverse budget levels and subscriber preferences, The New York Times (NYT) reported.

Movies such as Damsel, Lift, and The Greatest Night in Pop were highlighted for their role in driving audience engagement during the first quarter of this calendar year.

Netflix foresees full-year revenue growth ranging from 13 per cent to 15 per cent. Emphasising a “member-centric approach” in its shareholder letter, the company aims to meet audience preferences by providing a varied selection of top-notch movies, series, and games.

The NYT reported that Greg Peters, Netflix’s co-CEO, is planning on raising average revenue per user (ARPU), a key Wall Street metric by including advertising, the “extra member” feature allowing additional subscriptions for outside users, and tiered pricing structures with varying price points across different countries.

The NYT report stated that Ted Sarandos, Netflix’s other co-CEO, said that the company has no plans of increasing its content spending budget. “The floodgates have opened a little more on licensing for sure. But again, we’re focused on the ones that we think will drive the business,” Sarandos said.