Netflix Smashes Expectations, Adds 9.3Million Subscribers

Netflix announced that it gained a whopping 9.3 million new subscribers this year, bringing its total audience to an impressive half a billion. To boost its revenues, the company has taken measures to reduce account sharing and has even introduced advertisements.

Netflix’s performance in the first quarter of 2024 surpassed predictions, with 9.3 million new subscribers and profits of approximately $2.3 billion (€2.2 billion). The streaming giant now has a total of 269.6 million subscribers worldwide, with North America leading the way at 83 million.

According to Netflix’s investor letter, the company reaches an audience of over half a billion people, thanks to an average of more than two viewers per household. They emphasized that no other entertainment company has ever operated on such a massive scale with such ambitious programming.

Netflix Profit and Revenue Soar, Shares Dip Slightly

Netflix’s earnings figures reveal a remarkable increase in profit, surpassing $1 billion compared to the same quarter in 2023. Additionally, revenue also experienced a boost of just over $1 billion. Despite these impressive numbers, the company’s shares saw a slight dip in after-market trading on Thursday.

However, it’s important to note that Netflix’s shares have been steadily climbing over the past year. This upward trajectory can be attributed to various strategies aimed at maximizing revenue, such as cracking down on account sharing among multiple households and introducing a more affordable subscription plan that includes advertisements.

In the span of a year, Netflix’s stock has risen significantly, going from below $300 to a recent peak of just over $581. This growth showcases the company’s commitment to expanding its profitability and catering to a wider audience.

Investors are increasingly recognizing the company as the leading player in the highly competitive streaming market, which includes Apple, Amazon, Disney, and Warner Bros. Discovery.

However, Netflix surprised investors by announcing that it will no longer provide quarterly updates on subscriber numbers starting next year. This decision will make it more challenging to monitor the company’s progress.

Netflix has been sharing regular updates since its initial public offering in 2002, when it started as an online competitor to DVD rental stores.