For those of us still logged into our flatmate’s ex’s Netflix account, the password sharing crackdown might have been a real pain.
But for Netflix, this gamble is finally paying off, as the service added 13 million new subscribers at the end of 2023.
That brings Netflix’s total subscriber count to over 260 million, firmly cementing it as the most popular streaming service in the world.
Yet even as it turns record profits, Netflix says it plans to hike its prices even further.
Co-chief executive, Greg Peters, said: ‘The summary statement might be, “back to business as usual”.’
Despite losing subscribers in 2022, Netflix has now firmly cemented its place as the most popular streaming service in the world
Netflix has cemented its spot as the most popular streaming service in the world as the company announces it gained 13 million new subscribers during the last months of 2023
Netflix’s latest quarterly report, which covers the three months up to December 2023, shows year-on-year subscriber growth hit 12.8 per cent.
This was the fastest growth since 2020 and continues a run of gains which began last year after a wobbly 2022.
Netflix now retains the top spot as the most popular streaming service in the world, pulling ahead of Amazon Prime Video which has 220 million subscribers worldwide.
Netflix reported fourth-quarter net income of $937.8 million, or $2.11 per share.
For comparison, it reported a net income of $55.3 million, or 12 cents per share, in the fourth quarter of 2022.
What’s more, the company posted revenue of $8.83 billion for the quarter – up from $7.85 billion in the year-ago quarter.
In December 2023 Netflix made up nine per cent of all viewing in the UK, while Prime Video only claimed three per cent.
In the US, Netflix accounted for eight per cent of all TV viewing, while Prime and Disney only made up three and five per cent respectively.
However, many of the new subscribers opted for Netflix’s cheapest subscription which includes adverts.
In the 12 countries where adverts are offered, including the UK and US, these plans accounted for 40 per cent of new subscribers.
Currently, the cheapest plan with ads costs £4.99 ($6.99) compared with £10.99 ($15.49) for the ad-free subscription.
The subscriber increase follows a series of wins for the streaming service, including signing a $5bn (£3.9bn) deal to bring WWE’s Raw wrestling show to Netflix from the start of 2025
Netflix has found huge success with series including The Crown, which stars Elizabeth Debicki as Diana, Princess of Wales
A premium plan meanwhile, which includes HD streaming and extra members, now costs £17.99 ($23).
Netflix recently increased the price of basic and premium plans by £1 (£2) and £2 ($2) respectively.
But despite profits hitting $5.4bn (£4.23bn) for the year, compared with $4.49bn (£3.52bn) the year before, Netflix says it is now preparing to hike prices once more.
Mr Peters told an analyst call: ‘We largely put price increases on hold as we rolled out paid sharing. Now that we’re through that, we’re able to resume our standard approach.’
Netflix also made the surprise announcement that it would be axing its cheapest ad-free options in some countries.
Company executives told investors that it would begin to retire the £7.99 ($11.99) plan in Canada and the UK starting from April this year.
Netflix no longer allows new or returning subscribers to sign up for the basic plan, so the change will only affect existing members.
Subscribers will be forced to choose between paying for the more expensive subscription or accepting ads.
Netflix claims the results are a vindication of its quality content which won 18 Oscar nominations on Tuesday. The Netflix original picture Maestro, starring Bradley Cooper and Carey Mulligan, was nominated for ‘Best Picture’
Co-CEO of Netflix Ted Sarandos attends the ‘The Greatest Night In Pop’ Special Screening during the 2024 Sundance Film Festival
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Netflix claimed just 7.5 per cent of new subscribers signing up to a streaming service in the last quarter of 2022
In the first months of 2022, Netflix began to worry investors as it recorded its first ever loss of subscribers.
In the second quarter of 2022 Netflix lost 970,000 subscribers, following a loss of 200,000 in the first.
Rattled by the sudden losses, Netflix began to raise its prices and cracked down on password sharing.
Millions were barred from lending streaming accounts to anyone outside their household as the streaming giant toughened rules in more than 100 countries.
From March last year, Netflix moved to a system of ‘paid sharing’ which charged households an extra fee to let additional people use their account.
While this measure was never enforced with fines, the threat of discovery now seems to have been enough to turn around Netflix’s fortunes.
Ben Barringer, technology analyst at Quilter Cheviot, says: ‘These numbers underscore the fact that Netflix has ultimately won the streaming wars.
‘Legacy TV business simply have not been able to keep up and with many more returning to licencing their back catalogue to Netflix, their reliance on the streaming giant is only going to grow.’
This follows a number of other wins for the streaming platform, which included 18 Oscar nominations.
The Netflix original picture Maestro, starring Bradley Cooper and Carey Mulligan, was nominated for ‘Best Picture’ on Tuesday.
Netflix also announced that it would be bringing the WWE Raw, the most popular weekly pro-wrestling show, to the platform.
The company announced that it had signed a $5bn (£3.9bn) deal to show the wrestling show from January 2025.
This is the first time Raw has left linear television since its inception 31 years ago.