The tightening of its policy on sharing passwords between users and the strengthening of its live programming, particularly in sport, has borne fruit. During the fourth quarter of 2024, Netflix gained nearly 19 million new subscriptions and thus consolidated its position as leader in the streaming industry.
The highly anticipated second season of Squid Games, released on December 26 and the live broadcast of two matches from the professional American football NFL league and a boxing match between YouTuber and apprentice boxer Jake Paul and boxing legend Mike Tyson however, are not enough to explain these good results, according to Netflix.
« These programs represent only a small minority of total member acquisition during the quarter »said Greg Peters, co-chief executive officer of the company, during a conference for analysts. “It’s the entire service that’s driving the increase we’ve seen this quarter. »
The formula with advertising appeals
Netflix achieved $10.2 billion in quarterly revenue, up 16%, of which it posted $1.9 billion in net profit, both results slightly above market expectations. In the wake of these announcements, its title rose more than 14% during electronic trading after the close of the New York Stock Exchange. The platform already indicated in the spring that it would no longer disclose this indicator every three months, starting this year, in order to focus on measurements « d’engagement » audience (time spent watching content).
For analysts, this means that the group will focus on increasing its revenues and margins. He started by raising his prices in the United States. The “standard” plan now costs 18 dollars instead of 15.50 and the cheaper plan with advertising, launched at the end of 2022, increases to 8 dollars per month instead of 7. “This starting price seems really affordable to us, when you think about all the fun it represents,” said Greg Peters. “In the fourth quarter, the formula with ads represented more than 55% of registrations in countries where this formula exists”welcomed the leader. “ We doubled our advertising revenue year over year in 2024, and we plan to double it again this year. »
Sport as an audience booster
To convince advertisers and the public, the company is betting in particular on live broadcasts, especially sports. In January 2024, it signed a ten-year agreement with the American professional wrestling league WWE, for $5 billion, and last month it announced an exclusive contract with the FIFA Women’s World Cup.
“Despite the technical issues, the Jake Paul vs. Mike Tyson fight was the most-watched sporting event streamed. And NFL Christmas games broadcast by Netflix were watched by more than 24 million viewers,” underlined Mike Proulx, research director at Forrester, ahead of the results.
-“It’s no secret that live programming with massive audiences incentivizes big brands to spend. In 2025, there will be more choices in terms of ad formats, partnerships and technical options for targeting Netflix users. “, he added.
Apart from live, the platform will be able to count this year on the final seasons of Stranger Things and Squid Game, as well as the second season of Wednesday.
From July, audiences by program for three platforms – Netflix, Disney+ and Prime Video, initially – could be published by Médiamétrie. Which would allow “answer, for example, a question, such as: how many people brought together Squid Game+?, Netflix’s flagship series”underlined Friday Laurence Deléchapt, TV & Cross media director at Médiamétrie.
“Top content” (the most viewed) could thus be known for the SVOD (subscription streaming offer) on the three platforms concerned. This type of information currently depends on the goodwill of each platform.
Why would international video platforms, so reluctant to give audience figures, agree to do so for the French market? “Advertisers in France said: “It’s important for us that you go to Médiamétrie”, most international players understood and wanted to share” replies the CEO of the institute, Yannick Carriou. Médiamétrie, which has been working on this project for two years, has been conducting confidential tests since December on its new measurement. Nothing leaked. He just produced a study on Friday: the 4h16 of video consumed per day is done via TV (live or replay, in particular) at 69%, via the internet at 20% and via SVOD at 11%.
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