Netflix Adds 9.3 Million Subs

Netflix added 9.3 million paid members in Q1 of this year to end the period with 269.6 million customers, a 16 percent year-on-year gain, with revenues rising by almost 15 percent to $9.4 billion.

The streaming giant posted a Q1 net profit of $2.3 billion.

“We have built a hard-to-replicate combination of a strong slate, superior recommendations, broad reach and intense fandom, which drives healthy engagement on Netflix,” the company said in its letter to shareholders. “Improvement in these key areas is the best way to delight our members and continue to grow our business.”

Subscriptions to its ad-supported tiers were up 65 percent on the previous quarter, accounting for 40 percent of new signups in markets where the tiers are available.

In 2025, the streamer will stop reporting membership numbers as it focuses on revenues and operating margins as its key metrics, as well as engagement. “In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential,” the company said. “But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth. In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact. It’s why we stopped providing quarterly paid membership guidance in 2023 and, starting next year with our Q1’25 earnings, we will stop reporting quarterly membership numbers and ARM.”

North America (U.S. and Canada) delivered revenues of $4.2 billion, with an ARPU of $17.30. It added 2.53 million members to reach 82.66 million. EMEA memberships rose by 2.92 million to hit 91.73 million, with revenues rising to just under $3 billion, with an ARPU of $10.92. The streamer ended the quarter with 47.72 million members in LatAm, with 1.72 million net additions. Revenues were just under $1.2 billion, with ARPU slipping to $8.29. In AsiaPac the platform added 2.16 million customers to reach 47.5 million, with revenues of $1.02 billion an an ARPU of $7.35.