More than half of new Netflix’s new subscribers in Q4 last year joined on its cheaper ad-supported plan.
What’s more, the business revealed in its Q4 earnings that membership on its ads plan grew nearly 30 per cent quarter over quarter.
It also added an Extra Member with Ads offering in 10 of the 12 countries where it has an ads plan to give members additional choice and flexibility.
The company surpassed 300 million paid memberships during the quarter, adding a record 19 million subscribers. Netflix said the growth was driven by its content slate, improved product and typical fourth-quarter seasonality.
The streamer’s revenue climbed 16 per cent year over year to some US$1.02 billion (AU$1.63 billion).
“We really have built the business on variety and quality across countries, across regions, across genres and really focused year-round on having a very strong slate of programming for our members,” Netflix co-CEO Ted Sarandos said during an investor call.
Netflix said that its content slate in the quarter “outperformed even our high expectations”.
Squid Game season 2 is apparently on track to become one of its most watched original series seasons, Carry-On joined its all-time Top 10 films list, the Jake Paul vs. Mike Tyson fight became the “most-streamed sporting event ever” and on Christmas Day it delivered the two most-streamed NFL games in history.
It projects that it will continue to grow revenue between 12-14 per cent year-on-year, reflecting continued subscriber growth and a “rough doubling” of its ad revenue.
In Q1 2025, it expects revenue growth of 11 per cent, which is modestly below its full year guidance due to the timing of price changes and the seasonality of its ads business.
