Netflix Grows Subscribers and Revenue in Q3 2024

Netflix grew its subscriber base and earned more money in the third quarter. For the period ending Sept. 30, more than 5 million households signed up for the video streaming service. However, this represents a 42% drop compared to the same period last year.

While subscriber growth was down, Netflix still earned 41% more in the recent period — $2.36 billion. The company brought in $9.8 billion in revenue, a 15% jump. For the next quarter, Netflix predicts the same 15% revenue growth.

“We’ve delivered on our plan to reaccelerate our business, and we’re excited to finish the year strong with a great Q4 slate,” Netflix stated in a shareholder letter.

New programming expected in the next three months will include Season 2 of “Squid Games” and the highly anticipated Jake Paul and Mike Tyson fight. Two Christmas Day NFL games will also be airing on the streaming service.

At the end of the third quarter, Netflix subscribers numbered around 283 million worldwide. Time spent watching Netflix content averages two hours per subscriber.

Is Netflix Raising Prices?

Netflix has not announced any new price increases for U.S. subscribers as some expected. However, monthly plans were recently increased in Japan as well as in parts of Europe, the Middle East, and Africa. The last time Netflix raised its subscription rates in the U.S. was in October 2023.

Netflix’s subscriber base continues to grow with the help of the ad-supported, low-cost plan introduced two years ago. The subscription option is $6.99 per month, less than half the Standard $15.49/month plan, but viewers will get commercial interruptions during programming.

“Our ads plan allows us to offer a lower price point for consumers, which is proving to be popular,” Netflix said in the letter. “In Q3, it accounted for over 50% of sign-ups in our ads countries and membership on our ads plan grew 35% quarter over quarter.”

Part of the subscriber growth could be attributed to Netflix’s crackdown on password sharing last year. Under the rule, only Netflix subscribers within the same household can use the same account. Yet, members can add people outside the home to their account for an additional monthly fee. Competing streamer Disney+ announced a similar password-sharing crackdown last month.