(San Francisco) Netflix announced Thursday that it gained 9.3 million additional subscribers during the first quarter of 2024, bringing its total to nearly 270 million, as the market expected a slowdown in the growth of the giant of the streaming.
The American company achieved $9.37 billion in revenue and $2.3 billion in net profit in the first quarter, according to its press release, results up year-on-year and also higher than its forecasts and those of analysts. .
“We have built a winning formula that is difficult to reproduce,” said the Californian group, citing “a solid offering, a superior recommendation system and a diverse and passionate fan base.”
The platform had already started 2024 with great fanfare with 13 million additional subscribers gained during the holiday season, thanks in particular to its stricter policy in terms of sharing accounts between users and its cheaper subscription with advertising.
“Netflix continues to outsmart its competitors. He gained more subscribers than many analysts, including myself, predicted,” responded Ross Benes of Emarketer.
“Spirit of innovation”
“This indicates that password sharing was even more common than previously thought, as Netflix continues to convert parasitic viewers into paying users,” he added.
The analyst warns, however, that the streaming service “risks losing its spirit of innovation” if it becomes more selective in content production, in order to save money.
This year the pioneer of the sector will be able to count on new seasons of successful series, such as Bridgerton and especially Squid Gamethe South Korean series where contestants risk their lives in cruel children’s games in the hope of winning millions.
The platform also unveiled last month a new series produced by the creators of Game Of Thrones, The 3-body problemadapted from a great bestseller in China, evoking a parallel world of humanity which has established links with an extraterrestrial society.
But Netflix must no longer only fight to attract and retain the attention of viewers, it must also seduce advertisers, notes Mike Proulx, vice-president of Forrester.
Most streaming platforms now offer a subscription plan with advertising, so “brands now have more options for investing in media and Netflix must compete for a share of these budgets”, emphasizes the director of research.
Boxing match
In January, the company signed a ten-year broadcast agreement with the American professional wrestling league WWE, for $5 billion.
In March, it announced a partnership with Most Valuable Promotions for a match between YouTuber and apprentice boxer Jake Paul and ring legend Mike Tyson, which will be broadcast live on the platform at the end of July.
“Events like this attract advertisers because they generate a lot of attention and allow brands to partner with more personalized advertising formats,” explains Mike Proulx.
“We are at 23 million active monthly users” of the formula with advertising, said Greg Peters, co-general director, during a conference call in January.
He explained that his group wants to grow its advertising business, but without expecting it to become a major driver of revenue growth this year.
“I would say we have years of work ahead of us before advertising has a material impact on our overall business,” he added.
On Wall Street, Netflix shares lost more than 4% during electronic trading after the stock market closed on Thursday, a drop attributed to a lower than expected turnover forecast for the current quarter.