Netflix crosses 301 million subscribers in FY24, gains 19 million in Q4 alone

Netflix's strategy of broadening its ad-supported tier and introducing new pricing models appears to have resonated well with consumers seeking both cost-effective and premium viewing experiences

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New Delhi: Netflix reported a surge in subscriber numbers and revenue in the fiscal year 2024. In the fourth quarter alone, Netflix added 19 million net new subscribers worldwide, bringing its total membership to 301.6 million.

This growth was fueled by programming like the viral hit "Squid Game Season 2," alongside live sports events like the Jake Paul vs. Mike Tyson boxing match and NFL games.

Financially, Netflix reported revenue of $10.25 billion for the fourth quarter, a 16% increase from the previous year. 

For the entire fiscal year, Netflix's revenue grew by an impressive 14.8%, totalling approximately $38.7 billion, driven by both subscriber growth and strategic price increases across various markets. 

Additionally, Netflix's strategy of broadening its ad-supported tier and introducing new pricing models appears to have resonated well with consumers seeking both cost-effective and premium viewing experiences.

The company's advertising tier, introduced in 2022, has seen substantial uptake, with new ad-supported memberships accounting for 55% of all signups in countries where the plan is available. 

This segment grew by at least 30% quarter-over-quarter for two consecutive periods, indicating a successful pivot towards a dual-revenue stream model combining subscriptions with advertising.

Looking forward, Netflix announced it would cease reporting quarterly membership numbers from Q1 2025, shifting focus to revenue, operating margins, and engagement metrics, which they believe more accurately reflect the health and direction of the business. This strategic change comes as part of Netflix's broader evolution, including the expansion into live programming, games, and a more diverse content slate.

Co-CEOs Ted Sarandos and Greg Peters highlighted plans to deepen content offerings, particularly in sports and live events, and to continue innovating in how content is discovered and consumed on the platform. They also announced a $15 billion boost to the share repurchase program, underscoring confidence in the company's financial stability and shareholder value strategy.

Netflix is set to broaden its advertising technology landscape by rolling out its proprietary first-party ad tech platform to additional markets in 2025, starting with the United States in April. 

According to Netflix co-CEO Greg Peters, having its own ad tech platform enables the company to provide advertisers with "more data sources, more measurement, and more incrementality reporting." This move is expected to give Netflix greater control over its ad offerings, potentially leading to more effective and targeted advertising campaigns on the platform.

In an effort to offer more options to its users, Netflix has launched the 'Extra Member' feature with ads in 10 of the 12 countries where its ad-supported tier is available. This addition aims to provide members with additional choice and flexibility in how they share accounts while still generating ad revenue.

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