"Netflix's Subscribers Soaring High with 'Squid Game' and Sporting Events"
In 2023, Netflix stirred some dissatisfaction with its altered subscription plans, but this seemed to be a brief hiccup. The latest financial data reveals a substantial spike in revenue and a sharp rise in the number of subscribers. Despite hopes for cheaper subscriptions, many people were left disappointed.
Netflix managed to amass over 300 million subscribers, thanks in part to live sports events and the second season of "Squid Game." In the last quarter of the previous year, the company added nearly 19 million new subscribers. Revenue also saw a significant boost. Simultaneously, Netflix announced price increases in various regions such as the USA, Canada, Portugal, and Argentina.
The surge in Netflix subscribers has been ongoing since 2023. At that time, the service had clamped down on shared account usage and introduced cheaper subscription alternatives with advertisements in certain countries.
The influx of new subscribers appears to be driven by the content itself. The fourth quarter of 2024 saw Netflix broadcast two American football games and a boxing match between YouTube sensation Jake Paul and boxing legend Mike Tyson. The second season of the globally acclaimed series "Squid Game" premiered on December 26.
"Squid Game" Sets New Viewing Records
Tuesday's weekly charts showed that the second season of "Squid Game" had garnered another 13.2 million views, bringing its total view count to 165.7 million in just over three weeks. The first season, which aired in the fall of 2021, attracted a total of 265 million views within the first 90 days, making it Netflix's most-watched series to date.
Netflix executive Greg Peters pointed out that these new subscribers made up only "a small fraction of the overall membership growth." He emphasized that the overall offering, rather than any single show, was responsible for the increase.
The streaming service reported a 16% year-on-year revenue increase to $10.2 billion in the fourth quarter, and its net profit reached nearly $1.9 billion (approximately €1.8 billion). After-hours trading saw the share price rise by 14%.
Sports Remain a Priority
Netflix expects its revenue to continue rising in 2024, starting with price increases in the U.S. The standard subscription now costs $18 instead of $15.50, while the ad-supported tier will cost $8 per month (up from $7).
To attract and retain subscribers, Netflix is increasingly focusing on live sports. In January 2024, the service signed a $5 billion contract with World Wrestling Entertainment, and in December, it secured the rights to the 2027 Women's Football World Cup for FIFA. The final season of "Stranger Things" and the second season of "Wednesday" are also scheduled for release in 2024.
Netflix boasted about its lead in the streaming market, citing its dominant position in revenue and profit, as well as its average daily usage duration, which hovers around two hours. The competition is fierce, with direct competitors like Disney+ investing heavily and free platforms such as YouTube also claiming significant market shares.
The fourth quarter financial report revealed a remarkable increase in Netflix's subscribers, with an additional 19 million individuals joining the service during the last quarter of the previous year. This surge in subscribers can be attributed to the company's strategy of broadcasting popular events like American football games and high-profile boxing matches, as well as the highly anticipated second season of "Squid Game."
As the latest quarterly figures illustrate, Netflix's revenue also saw a substantial boost, possibly propelled by the surge in subscribers and the company's focus on live sports events and popular series.
