(San Francisco) Netflix gained more than eight million new subscribers in the second quarter, a much better result than the approximately five million expected by the market, after already two quarters of sustained growth.
The streaming pioneer also beat Wall Street expectations with $9.56 billion in revenue, including $2.15 billion in net income, according to its earnings release published Thursday.
The Californian group had nevertheless warned that these subscriber gains would be lower in the spring, after having started 2024 on a high note with 13 million additional subscriptions gained during the holiday season and more than 9 million during the first quarter.
Starting in 2025, however, Netflix will no longer disclose this figure every three months, in order to focus on audience “engagement” measures (time spent watching content), which better reflect the platform’s ability to retain and attract customers, according to the company’s management.
In this area, Netflix is not only facing its direct competitors (Disney, Apple, Amazon, Max, etc.), but also the many streaming and entertainment platforms, from YouTube to video games, TikTok and television channels.
In May, for example, YouTube was the leading streaming service in the United States, with nearly 10% market share in the television sector, according to the Nielsen institute.
Netflix came in second with 7.6%, thanks in part to the start of the third season of Bridgerton.
And YouTube had almost a quarter of the total audience within streaming platforms alone.
“Netflix’s market dominance is showing signs of weakening,” said Mike Proulx, vice president at Forrester.
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According to a study by the firm, it is “the only major broadcaster that saw its monthly usage decline among American adults online in 2024.”
“It is therefore all the more important for Netflix to continue to focus on its advertising business in order to diversify and grow its revenues,” the analyst added.
The stricter policy on sharing accounts between users and the launch of a cheaper subscription with advertising have been successful for the industry veteran.
But most other services now also offer a formula with advertising, creating increased competition among advertisers.
To convince them, Netflix has put in extra effort into live broadcast events, which are very popular with brands.
The platform has signed a ten-year broadcasting agreement with the American professional wrestling league WWE, for 5 billion dollars, and it will broadcast live on Saturday a boxing match between the YouTuber and apprentice boxer Jake Paul and the legend of the rings Mike Tyson.
Above all, the group acquired in May the rights to at least four matches of the American professional football league (NFL), which will take place during the next three days of Christmas.
Netflix has so far steered clear of traditional, high-priced competition. According to the Wall Street Journaleach of the two games this year will cost the company $75 million.
But the majority of the best audiences in 2023 in the United States were generated by NFL games.
The service is also increasing the number of live broadcasts in other areas, such as comedy. On August 3, it will broadcast live a show by Joe Rogan, a very well-known comedian in the United States, regularly accused of relaying conspiracy theories, particularly on his podcast on Spotify.