Netflix surpasses market predictions with $2.3B profit and subscriber surge
Netflix, the leading streaming platform, has announced a significant increase in both profit and subscriber count, exceeding market expectations. The company added over nine million subscribers in the first quarter of 2024, bringing its total to an impressive 269.6 million. In Q1, the profit also jumped to $2.3 billion from revenues close to $9.4 billion. This marks a substantial increase from the previous year's figures when the company netted $1.3 billion on $8.2 billion in revenue.
Influx of subscribers from US and Canada
Netflix's stringent policy against password sharing has led to a significant increase in subscriber numbers, marking the strongest start to a year since the onset of the pandemic in 2020. The streaming giant added 9.33 million subscribers in Q1 of 2024. This surge was primarily driven by an influx of subscribers from the US and Canada. In the Asia Pacific region, including India, Netflix gained 2.16 million subscribers in Q1 of 2024, bringing its total subscriber count to 47.5 million.
Netflix shares dip despite encouraging performance figures
Despite the impressive growth figures, Netflix shares fell by more than 4% to $581 in after-market trading. This decline was prompted by the company's forecast that sales for the current quarter might not meet market expectations. Investors are showing concern about Netflix's ability to maintain revenue growth and successfully monetize its emerging ad-supported tier.
Netflix's ad business and content strategy for 2024
Co-chief executive of Netflix, Greg Peters, acknowledged that the company is still in the early stages of developing its ad business, describing it as a "work in progress." To retain its subscriber base, Netflix is focusing on compelling content and has announced an impressive lineup for 2024. This includes eagerly awaited releases such as Squid Game Season 2 and two non-fiction series produced by Prince Harry and Meghan Markle.
