Netflix Adds 13.12 Million Subscribers Due to Password-Sharing Rules, Ad-Supported Tier; Now Sits at 260.28 Million
As it is first in the streaming industry in terms of subscribers, so too is Netflix in terms of the release of its final quarterly earnings report for 2023. As expected, Netflix has maintained its dominant place at the top of the streaming heap, and added 13.12 million subscribers in the final three months of the year, bringing its total to 260.28 global subscribers. It’s yet another healthy jump for Netflix, which ended the third quarter of 2023 with 247.15 million subscribers. The additions include 2.81 million new subscribers in the United States and Canada, raising the total of the service’s UCAN subscribers to 80.13 million.
In the Asia-Pacific region, Netflix increased by 2.91M users for a new total of 45.34. In Europe, the Middle East, and Africa the streamer added 5.05M customers, and in Latin America, it was able to lure 2.35 new users. In total, the company has experienced a 12.8% year-over-year growth in paid customers.
The fiscal year 2023 saw the world’s largest stream increase its revenue by 12.5% over 2022, even though Q4 showed the smaller income of the year, undoubtedly impacted by the content slowdown brought on by the duel-actors and writers strikes that hit Hollywood last year. Netflix’s average revenue per membership (ARM) rose 1% year-over-year, in line with the company’s expectations given price increases in some markets, as well as price reductions in over 100 international markets.
The increase marks the largest domestic subscriber gains for the streaming giant since the first full quarter of the COVID-19 pandemic. After the second quarter of 2020, Netflix reported adding 2.93M customers in the U.S. and Canada. Only Q3 2023’s 1.75 million additions even achieved half that number, but Q4’s 7.85% year-over-year improvement was nonetheless impressive. Globally, however, the 13.12 million new subscribers are the largest since before the pandemic, fueled by the further international expansion of ad-supported subscription offerings and efforts to curb password sharing. The quarterly total marked the largest Q4 addition in the company’s history.
According to Netflix, the streamer’s ad-supported plans increased membership by over 70% from the previous quarter and now account for 40% of all new sign-ups. Over the course of two years, the platform has turned around its momentum from a company that appeared to be in a freefall to one that is again standing proudly atop the streaming mountain.
Higher Prices and More Features
Netflix followed its last quarterly earnings report with an immediate price increase for its most expensive Premium plan. That plan rose in price from $19.99 per month to $22.99, but the price increase did not affect any other Netflix offering. The move was coupled with an increased crackdown on password sharing, giving viewers who had been watching for free on someone’s account a cost-effective way to officially subscribe.
The move was, in part, yet another way for Netflix to steer subscribers toward its $6.99-per-month Standard with Ads plan. This plan brings more revenue per customer in for Netflix, and as part of its designs to increase the number of subscribers on Standard with Ads, the streamer announced in November it would allow that plan’s subscribers to download titles for offline viewing, just like ad-free Netflix customers can do.
One of Netflix’s biggest stories from the quarter was its decision to unveil viewership data for 99% of the shows it has released to streaming in its history. It was a remarkable step for streaming transparency, though it has not prompted Netflix’s competitors to follow suit thus far.
Netflix unveiled a new streaming bundle during the quarter, announcing that it would package itself with Max in a special deal for select Verizon Wireless customers. The Netflix/Max bundle officially launched in December, and is now available for Verizon myPlan subscribers at a rate of just $10 per month for ad-supported plans of both streamers.
Netflix doesn’t make a habit of limiting its availability on various streaming platforms, but it won't create a dedicated app for Apple’s new Vision Pro mixed reality headset. Instead, buyers of the device will have to use its built-in web browser to watch Netflix, which means there won’t be any Netflix-themed environments available on the Vision Pro when it launches in February.
More Licensed Shows, More Sports Too?
From a content perspective, Netflix customers can expect to see more licensed titles on the service like the shows it brought on from HBO, NBC and AMC in 2023. Company co-CEO Ted Sarandos said in October that viewers could expect more licensing deals of this type going forward, and is slimming down its own production slate as it prepares to bring on more third-party titles.
Netflix has been notorious for its reluctance to add live sports to its lineup. But that ice began to thaw in the third quarter when it hosted the Netflix Cup celebrity golf tournament, and reports began to circulate that it was gearing up to bid on the rights to the NBA’s new In-Season Tournament. Netflix quashed those rumors, though it did say it was interested in creating an NBA-themed documentary series going forward.
One sports-related story Netflix did not quash was a report that the streamer was considering producing a live boxing match featuring YouTube star Jake Paul. There’s been no news on that idea since, but if more updates become available The Streamable will keep you in the know.
One of Netflix’s biggest content additions during the quarter had nothing to do with its TV or movie segments. In late November, the streamer added “Grand Theft Auto: The Trilogy - The Definitive Edition” to its gaming portal, one of the biggest game licensing deals of all time for Netflix. Netflix also offers a wide variety of mobile games in that portal, and has designs on cloud gaming and more ambitious video game projects.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.