The digital media consumer wants Netflix, but does not want to pay full price for it. This explains the trend where half of new subscribers choose the cheaper subscription with commercial breaks.
That number also grew by 35 percent from quarter to quarter.
This new subscription form, cheaper but with commercial breaks, is currently available in the US. It will also be available in Canada before the end of 2024 and in more countries in 2025. The streaming service does not mention what these are when publishing the quarterly figures just now.
The advertising turnover is also not really worth mentioning. Only in the course of 2025 does Netflix expect to achieve critical mass for advertisers in the US. The volume (display supply) is there, but the demand is not yet. Only when demand picks up can advertising revenue become one of the drivers of revenue growth.
The number of subscribers rose by 14.4 percent to 283 million last quarter. Turnover grew by fifteen percent to 9.8 billion and net profit rose by almost half to 2.4 billion dollars. No reason to worry from a financial point of view, but the advertising product is also intended for the longer term. For Netflix to be able to compete on price with other streaming services.
In Europe and the Middle East, Netflix shows 15 percent revenue growth. Here it also has more subscribers (96 million) than in its home market of North America (85 million).
Investors responded positively to the figures and rewarded the share in after-hours trading with an increase of 3.4 percent to $ 711.
Source: www.emerce.nl
