The platform had already started 2024 with great fanfare with 13 million additional subscribers gained during the holiday season, thanks in particular to its stricter policy in terms of sharing accounts between users and its cheaper subscription with advertising.
“Netflix continues to screw over its competitors. He gained more subscribers than many analysts, including myself, predicted,” responded Ross Benes of Emarketer. “This indicates that password sharing was even more common than previously thought, as Netflix continues to convert parasitic viewers into paying users.”
Release of successful series
The analyst warns, however, that the streaming service “risks losing its spirit of innovation” if it becomes more selective in the production of content, in order to save money.
This year, the pioneer of the sector will be able to count on new seasons of successful series, such as Bridgerton and especially Squid Gamethe South Korean series where contestants risk their lives in cruel children’s games in the hope of winning millions.
The platform also unveiled last month a new series produced by the creators of Game of Thrones, The 3-body problemadapted from a great bestseller in China, evoking a parallel world of humanity which has established links with an extraterrestrial society.
Advertising activity, a major driver of Netflix’s growth
But Netflix must no longer only fight to attract and retain the attention of viewers, it must also seduce advertisers, notes Mike Proulx, vice-president of Forrester.
Most streaming platforms now offer a subscription plan with advertising, so “brands now have more options for investing in media and Netflix must compete for a share of these budgets”, emphasizes the director of research.
In January, the company signed a ten-year broadcast agreement with the American professional wrestling league WWE, for $5 billion. In March, it announced a partnership with Most Valuable Promotions for a match between YouTuber and apprentice boxer Jake Paul and ring legend Mike Tyson, which will be broadcast live on the platform at the end of July.
“We are at 23 million active monthly users” of the formula with advertising, said Greg Peters, co-general manager, during a conference call in January. He explained that his group wants to grow its advertising business, but without expecting it to become a major driver of revenue growth this year. “I would say we have years of work ahead of us before advertising has a material impact on our overall business,” he added.
