Netflix Adds 8.76 Million Subscribers in Q3 2023 to Bring Global Total to 247.15M
Netflix Adds 8.76 Million Subscribers in Q3 2023 to Bring Global Total to 247.15M
Netflix kicked off this quarter’s round of earnings reports among streaming services on Wednesday, Oct. 18. As the world’s largest streamer, it makes sense that Netflix gets to go first, especially when it has such great numbers to report. The company has unveiled that it has gained 8.76 million subscribers in the third quarter of 2023, bringing it to a total of 247.15M.
That’s a meaningful gain over the 238.39M users Netflix claimed in its last quarterly earnings report in July. The increases include 1.75M new subscribers in the United States and Canada, bringing UCAN subscriber totals to 77.32M. The subscriber growth in Q3 marked the best UCAN quarterly performance since the second quarter of 2020 in the first wave of the COVID-19 shutdowns when the streamer added 2.93 million customers.
In the Asia-Pacific region, Netflix brought on 1.88 million users for a new total of 42.43M. In Europe, the Middle East and Africa the streamer added 3.95M customers, and in Latin America, it was able to lure 1.18 new users. In total, the company has experienced a 10.8% year-over-year growth in paid customers.
One of the largest revenue-generating moves that the company has made has been to actively encourage customers to opt for its nearly year-old ad-supported plan. According to the streamer’s report, the plan is up nearly 70% from the previous quarter which ended on June 30, 2023. The increased subscriber totals and additional monetization opportunities have led to a 10.7% year-over-year improvement in revenue. Despite this fact, Netflix’s average revenue per membership (ARM) decreased by 1% yoy, due to a higher-than-expected adoption in lower ARM countries.
The new subscriber totals show Netflix is continuing to gain from its decision to crack down on password sharing in May. Former account sharers are continuing to convert to paying customers, despite the vast public outcry that arose when Netflix first announced it would no longer allow paid users to continue sharing their passwords.
The streamer finally started to see its ad-supported “Standard with Ads” plan gain traction during Q3. The plan accounted for 28-30% of new subscriptions during the quarter, a figure no doubt aided by the fact that Netflix discontinued its cheapest ad-free tier for new subscribers in July.
Suit Up!
Content-wise, the biggest story of the quarter for Netflix has been the skyrocketing popularity of “Suits.” That series went off the air in 2019, but a licensing deal with Peacock brought the show to Netflix over the summer, and it has been a ratings bonanza ever since. In September the show was streamed for more than 8 billion minutes, according to Nielsen. Netflix has seen similar ratings boosts from shows licensed from HBO such as “Insecure,” “Ballers” and other titles.
Sports fans were given a reason to tune into Netflix this quarter, as well. The company revealed details of its long-planned golf tournament this week, detailing which Formula One and PGA athletes fans could expect to see when the tournament goes live on Nov. 14. Ricky Fowler, Justin Thomas, Alex Albon and many others will be in attendance, and Netflix is hoping it has the technical details of live streaming ironed out well in advance.
Netflix is well-known for its binge-release tactics, allowing users to stream all episodes of a given show on the day its new season is released. But that may change with the next season of “Squid Game,” as Netflix is reportedly considering dropping episodes in two batches, similar to its strategy for “Stranger Things” Season 4.
Behind the Curtain
On the technical side of things, Netflix has announced a reworking of its deal with Microsoft, the company responsible for developing its advertising suite. Netflix is now looking for other partners to help it improve its ad technology, as the ad-supported tier did not initially attract as many customers as the company hoped it would.
The streamer has also stopped support for a number of older devices recently. In October, many users of Blu-Ray players, smart TVs and streaming dongles more than 10 years old began receiving notice that the Netflix app was no longer available on that device, and that they would have to turn to others to enjoy Netflix content.
The streaming marketplace is ultra-competitive, and doesn’t leave much room for cooperation between individual streamers. But Netflix did find common ground with services like Disney+ and Max to form a trade group that will advocate for reforms in the laws and regulations that govern streaming services in September.
The company is still hard at work on its gaming segment, as well. Netflix is still working to produce its first Triple-A game, and will introduce its mobile games to smart TVs and other devices in the near future, with users’ phones set to serve as controllers.
All of Netflix’s new games and content come at a price for users, however. A new report suggests the company is planning to raise prices soon; CFO Spencer Neumann pledged in July that no price increase would be enacted until 2024, so users can circle January or February as a potential date for the rate hike.
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.”