Netflix added 8.76 million subscribers in the third quarter of 2023, taking its total closer to a quarter of a billion members globally. The numbers were boosted by a combination of tightening up on account sharing and offering cheaper plans supported by advertising. Netflix is now raising its prices in leading markets and expects to generate $6.5 billion in free cash flow in 2023.
Netflix ended the third quarter of 2023 with 247.15 million paid subscribers, up by 24 million in a year, or 10.8%.
That includes a net increase of 1.75 million subscribers in the United States in the last quarter and almost 4 million over 12 months.
We can expect Netflix to have more than 250 million subscribers before the end of the year. It says there are hundreds of millions more that it wants to win over the coming years, with an addressable market of half a billion connected television households worldwide.
Netflix has seen some success with what it calls ‘paid sharing’, converting free riders into paying customers, saying the number of customers cancelling as s result is lower than it expected.
Netflix is raising its prices in the United Kingdom, with its premium plan now £17.99 a month.
The advertising supported plan, which will remain at £4.99 a month in the United Kingdom, accounts for 30% of new signups in the 12 countries in which it is available.
Over 70% of Netflix subscribers are now outside the United States. The company is now producing or co-producing in over 50 countries and languages. It expects to spend $17 billion on programming in 2024.
Netflix will be launching Netflix House, physical flagship destinations that combine live experiences, food and retail, as it aims to build on fan relationships with some of its franchises.