Netflix Revenues Up 7.8 Percent to $8.5 Billion

Netflix earned a net income of $2.4 billion on revenues of $9.8 billion in the quarter ending September 30. Those figures represent year-over-year (YOY) gains of 41 percent and 15 percent, respectively. Netflix now has 282.72 million paid subscribers, a gain of 14.4 percent YOY.

“We’ve delivered a string of hits this quarter, including new series like The Perfect Couple, Nobody Wants This, and Tokyo Swindlers, returning favorites like Emily in Paris and Cobra Kai, and big films like Beverly Hills Cop: Axel F, Rebel Ridge, and Officer Black Belt,” a Netflix letter to shareholders reads. “Engagement, our best proxy for member happiness, remains healthy. Through the first three quarters of 2024, view hours per member among owner households (the clearest engagement trends [since] the introduction of paid sharing) increased year over year.”

This is one of the last quarters in which Netflix will report subscriber numbers: Starting in fiscal Q1 2025 mid-year, the firm will instead focus on engagement and profitability. In anticipation of this shift, Netflix has cracked down on account sharing, introduced an ad-supported tier, added games, and raised prices across the board. It’s also dramatically expanded its use of debt to finance content acquisition and production: The firm now holds $16 billion in debt, up from $14 billion in the prior quarter. Its expansion into sports will likely continue this trend.

Looking ahead, Netflix expects to see full-year revenue land at $43 billion to $44 billion, or roughly 6 percent growth YOY. With the North American market pretty much saturated, the company plans to expand its audiences in Latin America, Asia-Pacific, and other international markets. And, no doubt, raise prices yet again.