Netflix Adds 1.75 Million Customers in Q1 2023; Grows to 232.5M Globally
Netflix Adds 1.75 Million Customers in Q1 2023; Grows to 232.5M Globally
The first full quarter since Netflix’s new leadership team took over is in the books, and it shows that the company is moving in the right direction following a rocky 2022.
Netflix unveiled its first quarter earnings for 2023 on Tuesday, and the service gained 1.75 million subscribers, a change of 4.9% over the first quarter of 2022. The increase brings the company to a total of 232.5 million global subscribers, following the 230.75 million it reported at the end of last year.
The improvement includes the addition of 100,000 customers in the United States and Canada, the third straight quarter of domestic growth following the first back-to-back quarters of subscriber declines in the company’s history. The two countries now account for 74.40 million of the streamer’s streaming subscribers. The Asia-Pacific region provided the biggest growth with the regional customer total growing 1.46 million to come to nearly 39.5M. Europe, Middle East, and Africa saw an increase of 640K subscribers, while Latin America had a decline of 450,000, perhaps due to the expanded efforts to curb password-sharing.
The biggest story for Netflix this quarter has been its plans to end password sharing. Company representatives promised that efforts to stop users from sharing accounts would be introduced more widely this quarter. But things came to a head when Netflix accidentally posted rules against password sharing that included the potential of accounts being blocked on its American Help Center page. The company was forced to distance itself from that information following the large, public outcry that ensued.
Since that time, studies have continued to show troubling signs for the service if it carries out its plans to halt account sharing. Netflix was the most-canceled streaming service during the end of 2022, and 35% of its current customers say they'll cancel if anti-password sharing restrictions are enacted.
This quarter saw the continued growth of Netflix’s Basic with Ads plan. A report from late March showed that Basic with Ads had crossed the 1 million domestic users mark, though that figure includes accounts who are sharing passwords. That’s encouraging for Netflix, but it still doesn't outpace the ad-supported tiers of either Disney+ or HBO Max. Basic with Ads also became available on Apple TV devices in March, after being absent from that brand’s streaming box for nearly five months after launch.
There were some big content achievements and announcements from Netflix in the quarter. The service hosted its first-ever live event in March when the stand-up comedy special “Chris Rock: Selective Outrage” aired on the service. Netflix also announced that it will be launching a behind-the-scenes series on the lives of NFL quarterbacks sometime during the summer of 2023.
Netflix continued efforts to invest in its mobile games this quarter. Company executives have promised the service will add over 40 more games to its catalog by the end of 2023. The service is also working to adapt its games for play on smart TVs, a function that will allow players to utilize their mobile phones as controllers.
Some Netflix customers were surprised to learn that the company was ditching its “Surprise Me” feature, which compiled new recommendations for users based on past preferences. There was some good news on the user interface front for Netflix subscribers, however; the services now offers subtitle customization options on more platforms and screens than ever before. Netflix Premium users got access to Spatial Audio on select titles this quarter, for a better sound experience than was ever before available. Additionally, users of Verizon’s aggregation platform +play can get one full year of Netflix free if they sign up for another annual streaming subscription, thanks to a renewal of the agreement between the two sides.
Netflix
Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”