Netflix's Stellar Growth in 2024
Netflix has once again confirmed its leadership in the streaming sector, adding eight million new subscribers in the latest period. This figure has shattered analysts' expectations of around 4.8 million new subscriptions. The company has recorded one of its best first semesters in its history, surpassing the 5.89 million new subscribers recorded in the second quarter of 2023.
Executives attribute this growth to the end of shared passwords and the launch of an ad-supported service starting at $6.99 per month in the United States. The basic package alone is responsible for nearly four million new accounts. The company now boasts 277 million subscribers, far ahead of competitors like Disney+ and Max, who are struggling to expand their user bases.
Strategic Moves and Future Plans
Netflix's revenue grew 17% year-over-year, reaching $9.5 billion, well above forecasts. This financial success has led the company to raise its 2024 predictions, with profit margins expected to hit 26%. The company is also planning a new interface to enhance user experience, offering better synopses, previews, and sections that group content for specific moments or experiences.
In addition to its robust catalog of series and movies, Netflix is increasing its offering of sports and live shows. The platform has signed a ten-year broadcast agreement with the American professional wrestling league WWE for $5 billion and will also broadcast NFL games for the first time during Christmas 2024. These moves aim to diversify and increase revenue, especially as Netflix plans to shift its focus to audience 'engagement' metrics from 2025.
Netflix's market dominance is being challenged by other platforms like YouTube, which led the streaming service market in the United States in May with nearly 10% market share. Despite this, Netflix remains a strong contender, thanks to popular titles like Bridgerton, The Gentleman, and new offerings like WWE and NFL games.
