Netflix reports increases in income, revenue in Q2, membership surpasses 277M
Date
7/21/2024 3:36:22 AM
(MENAFN) In the second quarter of the year, Netflix reported increases in both net income and revenue, with total membership surpassing 277 million, according to its financial results released on Thursday. Net income rose to nearly USD2.15 billion, marking a 44.3 percent increase from USD1.49 billion in the same quarter last year. Revenue grew by 16.7 percent, reaching USD9.56 billion compared to USD8.19 billion during the previous year’s quarter.
Paid memberships reached over 277.6 million from April to June, a 16.4 percent increase, or more than 39 million, from 238.4 million a year earlier. Netflix surpassed the 200-million subscription mark in the last quarter of 2020. Globally, the number of paid streaming memberships increased by eight million from the previous quarter’s 269.6 million between January and March.
Netflix, the world’s largest streaming service for movies and series, also reported a 34 percent increase in ad-supported memberships during the second quarter. The company stated that advertisements serve two key strategic purposes: they allow Netflix to offer lower prices to consumers and provide an additional revenue and profit stream.
While Netflix phased out its ad-free Basic plan in the UK and Canada earlier this year, it will now begin phasing it out in the US and France. The USD6.99 per month ad-supported plan, which includes two streams, high definition, and downloads, will replace the USD11.99 ad-free plan in the US.
Netflix mentioned that ad revenue is “growing nicely” and becoming a more significant part of its business. The company believes it is on track to achieve substantial ad subscriber growth by 2025 and aims to further increase ad memberships in 2026 and beyond.
Netflix’s stock closed at USD643.04 per share on Thursday, a 0.68 percent decline on the Nasdaq, and dropped to as low as USD621.95 in after-hours trading, reflecting a 3.3 percent decline.
MENAFN21072024000045015839ID1108463455
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.