Netflix announced Thursday that it added 9.3 million subscribers in the first quarter of 2024, beating analyst expectations and solidifying its position as the entertainment industry's leading streaming company.
Additionally, net income was $2.3 billion and sales were $9.3 billion, an increase of 15% compared to the same period last year. Netflix currently has approximately 270 million subscribers worldwide.
The streaming giant said the quarter was fueled by viewer interest in series such as “Griselda,” “The Three Body Problem” and “Avatar: The Last Airbender.”
One year after its founding, the company's ad tier business, which provides lower-priced options to subscribers, grew 65% sequentially. The company said that in markets where advertising space was available, 40% of new signups chose that option. A crackdown on password sharing between households also boosted the company's quarterly results.
“As stated in our previous letter, our two advertising priorities are to grow our membership base and strengthen our capabilities for advertisers,” the company said in a letter to shareholders. “We made progress on both fronts in Q1.”
The company currently expects full-year revenue growth to reach 13% to 15%.
“No entertainment company has ever produced programming at this scale or with this kind of ambition,” Netflix said in the letter. “To satisfy such a large audience, we need lots of great stories that appeal to a variety of tastes. By great, we mean the movies, series, and games our members love (which means we're committed to quality We take an audience-centric approach.”
Dan Lin will begin his role as Netflix's head of movies on April 1, and his message to employees is to improve the overall quality of the service's movies and create more variety at different budget levels. The goal was to produce a movie that His aim is to further appeal to the diverse interests of Netflix's vast subscriber base.
Movies highlighted by Netflix for driving engagement in the first quarter include “Damsel” starring Millie Bobby Brown, “Lift” starring Kevin Hart, and the production of the bonus song “We Are the World.” Includes the documentary “The Greatest Night in Pop.'' In 1985.
