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Netflix has just released its third quarter 2024 results. And the good news is that the growth of SVOD continues. During the third quarter, Netflix generated $9.825 billion in revenue, up 15% year-over-year. Operating profit was $2.909 billion, compared to $1.916 billion in the same period in 2023. The number of paying subscribers is also up, as the platform added 5 million new subscribers.
In addition, in its financial documents, Netflix also reveals new figures on subscriber engagement. The SVOD indicates that the number of viewing hours per household increased year-over-year. According to the financial documents, each paying member spends an average of two hours per day watching content.
Netflix also indicates that it continues to have good engagement figures, despite the end of free account sharing. Indeed, this measure led to a decrease in the number of viewing hours on shared accounts, because there were fewer users on the same account. But Netflix indicates that, when we isolate the viewing hours of account owners (excluding shares), we have an increase in engagement.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000Netflix on the eve of a major change
Otherwise, it should be noted that today, Netflix is on the eve of a major change. Indeed, if the company's third-quarter financial results still include the number of paying subscribers, this information will no longer be revealed by the SVOD starting next year. Indeed, Netflix now believes that it is engagement, but not the number of subscribers, that is the best indicator of user satisfaction. However, it has indicated that it will continue to reveal the number of subscribers each time it reaches important milestones.
It should also be remembered that today, in addition to subscriptions, Netflix also generates revenue through advertising. And this revenue increases when users who subscribe to the subscription with advertising spend more time on the platform. Regarding advertising, Netflix also indicates that the formula with advertising continues to progress, while it will soon be two years old.
In countries where the subscription with advertising is offered, it has a 50% share of new subscriptions. In addition, the number of subscribers to this offer has grown by 35% from one quarter to another. Netflix also estimates that in 2025, it will reach “critical scale of advertising subscribers for advertisers”.
- According to Netflix, its subscribers spend an average of 2 hours per day on the platform
- The information is published in Netflix’s results for the third quarter of 2024
- Next year, Netflix will stop sharing its subscriber count every quarter, and instead focus on engagement
- Engagement is said to be a better way to measure consumer satisfaction, and it’s also an important factor in monetizing with advertising
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