The pioneer of streaming services, Netflix recorded a net profit of USD 1.67 billion in Q3 2023, a 19.9 percent increase compared to the same period last year. Revenue from July to September reached USD 8.54 billion, a 7.8 percent growth from a year ago.
The numbers show that the platform has not been affected by the almost five-month strike of Hollywood writers and actors. It also shows that the company’s strategy of banning account sharing, which began to be implemented in 2022, had a positive effect on Netflix’s results throughout the year — the company recovered subscribers lost in Q1 and continued to grow.
The streaming platform has 10.8 percent more subscribers than a year ago, reaching 247.1 million members worldwide. In the case of Latin America, Netflix gained 1.18 million subscribers in Q3; there are 43.6 million members in the region.
The streaming platform’s revenues in Latin America totaled USD 1.14 billion, an increase of 11.6 percent in the year — growth driven by the strategy of ending subscription sharing, which led to a 3 percent increase in average revenue per subscriber in the region to USD 8.85.
Over 70 percent of Netflix members are now outside the U.S. —which also means more investments in original productions in other regions. “We are now producing or co-producing in over 50 countries and languages with the goal of delighting local audiences,” said the company in its letter to shareholders.
The company’s immediate priority is building its ad membership so that Netflix becomes an essential buy for advertisers. Over Q3, the platform’s ads membership increased nearly 70 percent quarter-over-quarter and now accounts for around 30 percent of all new sign-ups in the 12 countries where Netflix offers this option.
According to the company, the growth in ad membership “has been driven by improvements to our offering — including two streams, higher quality video, and a programming slate that’s now essentially on par with our other plans — as well as the phasing out of our Basic plan for new and rejoining members in the US, the UK, Italy, and Canada.” Therefore, the company decided to do the same in six other key markets, including Mexico and Brazil.
In Brazil, the platform confirmed the end of the so-called “basic” plan, which costs BRL 25.90 (USD 5.12) monthly.
New subscribers and members renewing subscriptions will now have three plan options: Standard with ads (BRL 18.90), with up to two simultaneous screens; standard without ads (BRL 39.90), and premium (BRL 55.90 and four simultaneous screens).
Search
