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· Posted on
February 21, 2024

The stream is over for password-moochers as Netflix sees its biggest subscriber increase since 2020

Netflix has added more than 8.7 million global subscribers during the third quarter.

What's the key learning?

  • Netflix's subscriber growth is largely thanks to Netflix's password-sharing crackdown and its new ad-supported tier gaining traction.
  • Netflix has become so confident from these results that it's planning to jack up prices again.
  • Despite the lower subscription cost, the ad-supported tier is actually Netflix's golden goose because it lays both subscription and advertising eggs.

👉 Background: Netflix is the streaming giant with over 247 million subscribers around the world. And, it's been a pretty topsy turvy year or two months for Netflix

  • In the first half of 2022, its subscriber numbers went backwards for the first time in 10 years.
  • This year, it lost a heap of shows in production thanks to the writer and actor strikes.

👉 What happened: But now, Netflix has shrugged it off to add more than 8.7 million global subscribers during the third quarter - their biggest quarterly net increase since 2020. And, it's largely thanks to Netflix's password-sharing crackdown and its new ad-supported tier gaining traction.

👉 What else: Netflix has become so confident from these results that it's planning to jack up prices again. Ouchhh!

What's the key learning?

💡Higher margins don't always come from premium pricing, and Netflix serves as a prime example of that right now.

💡Interestingly, the ad-supported tier is actually Netflix's highest-margin offering. Despite the lower subscription cost, this tier is actually Netflix's golden goose because it lays both subscription and advertising eggs.

💡Netlfix's ad-plan members grew 70% quarter over quarter, which is a win for the streaming company's margins and profitability.

‍

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