Netflix Revenues Grew 4 Percent in Q1
- Paul Thurrott
- Apr 18, 2023
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Netflix reported today that it earned a net income of $1.3 billion on revenues of $8.1 billion in the quarter ending March 31. Revenues were up 4 percent year-over-year and the results were in-line with Wall Street expectations.
“Netflix is the leading streaming service based on engagement, revenue, and profit and we are working to build on that in 2023,” a Netflix letter to shareholders reads. “In short, we’re off to a good start in 2023. As always, our focus remains pleasing our members and attracting great creators so that we can continue to build a wildly successful business.”
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Looking to the future, Netflix has delayed its plan to charge account sharers a higher monthly fee in most markets, but that will be implemented by mid-year and should noticeably improve the firm’s financials in the second half. The firm will also upgrade its ad-supported service this month to support 1080p video instead of just 720p, and it will support two concurrent streams in all 12 markets in which the service is available.
“Competition remains intense as we compete with so many forms of entertainment (linear TV, gaming, user-generated content, premium streaming content, and social media to name just a few),” the letter continues. “Among our streaming video competitors, our traditional entertainment peers appear to be focused on revenue diversification across theatrical, linear TV, and third-party licensing as they manage through the hard transition from legacy businesses to streaming – whereas we are ‘all in’ on streaming … We don’t focus too much on the competition because we’ve learned over the years that consistently great execution (better movies, TV series, and now games, better discovery, and buzzier, more creative marketing) is the key to our long-term success. We succeed by getting a bit better, a bit faster than the competition every month.”
Netflix also announced that it will wind down its DVD rental service on September 29, 2023 after a 25-year run. Right, I didn’t know it was still a thing either.