Netflix gains over eight million subscribers and focuses on audience loyalty

Starting in 2025, the streaming pioneer will no longer disclose this figure every three months in order to focus on audience “engagement” measures, namely the time spent watching its content.

Netflix added more than eight million new subscribers in the second quarter, a much better result than the approximately five million expected by the market, after two quarters of sustained growth. The streaming pioneer also exceeded Wall Street expectations with $9.56 billion in revenue, including $2.15 billion in net income, according to a press release published Thursday, July 18.

The California group had warned that these subscriber gains would be lower in the spring. The company started the year off 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 the measures “of commitment” audience, or the time spent watching content. They better reflect the platform’s ability to retain and attract customers, according to the company’s management.

Netflix, which has more than 277 million subscribers worldwide, is now banking on retaining and engaging users who are overwhelmed by a plethora of entertainment options. “The competition for entertainment is super intense,” acknowledged Ted Sarandos, co-CEO of the group, during a conference for analysts. “And we fight for every second spent viewing our content.”

When it comes to engagement, the company is not only up against its direct competitors – Disney, Apple, Amazon, Max and others – but also the many streaming and entertainment platforms, from YouTube to video games to TikTok and television networks.

In May, for example, YouTube was the leading streaming service in the United States, with nearly 10% of the television market share, according to the Nielsen institute. Netflix came in second with 7.6%, thanks in part to the start of the broadcast of the third season of the series The Bridgerton Chronicle. And YouTube had almost a quarter of the total audience within streaming platforms alone.

“Netflix’s Market Dominance Shows Signs of Weakening“, estimates Mike Proulx, vice president of the Forrester consultancy. According to one of his studies, it is “the only major broadcaster to see monthly usage decline among U.S. adults online in 2024”. “It is therefore all the more important for Netflix to continue to focus on its advertising activities in order to diversify and increase its revenues.”says the analyst.

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 plan with advertising, creating increased competition among advertisers.

To convince them, Netflix has doubled its efforts in live 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. Similarly, it will broadcast live on Saturday, July 21, a boxing match between YouTuber and apprentice boxer Jake Paul and ring legend Mike Tyson.

The group also acquired in May the rights to at least four games of the professional American football league NFL, which will take place during the Christmas period. Netflix had until now stayed away from traditional competitions with high prices. According to the Wall Street Journaleach of this year’s two games will cost the company $75 million. But the majority of the best audiences in 2023 in the United States have been 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 in his podcast on Spotify.