Netflix gained a lot of new users at the end of last year because the company started cracking down on password-sharing. In just three months, from October to December, more than 13.1 million people signed up for Netflix. This was the highest number for any three-month period since 2020.
The company is feeling confident about its growth and is planning to increase its prices. Greg Peters, one of the CEOs, mentioned that they had temporarily stopped raising prices while dealing with the issue of shared passwords. Now, they are getting back to their usual way of doing things.
Interestingly, many of the new users chose the cheapest Netflix plan, even though it includes ads. In countries where Netflix shows ads, 40% of the new sign-ups went for this plan. This is a bit ironic because Netflix had resisted showing ads for a long time, thinking it would make the viewer experience worse.
Netflix faced some challenges in the first half of 2022, with a decrease in subscribers and profits. This led them to try new strategies, like showing ads and cracking down on password-sharing. They’re also trying out more live events to attract new viewers.
The recent deal with WWE Raw, a popular wrestling show, is part of their effort to bring in more viewers and revenue. Some other streaming services, like Amazon, are also making similar moves to attract more viewers.
According to Paolo Pescatore, an analyst, Netflix is still the leader among all streaming services. The latest results show that their strategy is working well.
Netflix charges different prices for plans with and without ads. In the UK, the plan with ads costs £4.99, while the ad-free plan costs £10.99. In the US, it’s $6.99 with ads and $15.49 without.
Although Netflix doesn’t expect ads to contribute much to its growth this year, adding ads to subscriptions could increase the money they make from each account. Netflix had already mentioned earlier that the ad-supported plan was gaining popularity.
Despite concerns that Netflix might struggle without a big hit show, the company reported a strong quarter with popular programs like the Beckham documentary series and Adam Sandler’s Leo. It also received 18 Oscar nominations, which include a “Best Picture” nomination for the movie Maestro.
In the financial aspect, Netflix’s revenue for 2023 was over $33.7 billion, a 6% increase from the previous year. Profits for the year were $5.4 billion, up from $4.49 billion in the previous year.
This information comes from the BBC, which reported on Netflix’s recent performance. The stock market reacted positively to this news, with Netflix’s shares increasing more than 6% in after-hours trading.
Source : BBC
https://www.bbc.com/news/business-68072955