Video streaming major Netflix, which provides exciting content including video games for its customers, has revealed its key achievements during the second-quarter of 2024.
Netflix has generated sales revenue of $9.559 billion, registering 16.8 percent increase, in Q2 2024. Netflix is targeting $9.727 billion in revenue during Q3 2024. The expectation for strong sales in the current quarter shows that Netflix’s customers will not be leaving the streaming platform.
Netflix has added more than 8 million subscribers in its second quarter as the streaming service benefited from a password-sharing crackdown, Reuters news report said.
The new sign-ups brought the total number of Netflix subscribers to 277.65 million (up 16.5 percent) at the end of June. Netflix has added 8.05 million streaming paid memberships during April-June showing its capability in bringing the best content for viewers. But it had added 9.33 million paid members in Q1 and 13.12 million in Q4 2023.
India
In Q2, India was the No. 2 and 3 country in terms of paid additions and revenue percent growth, respectively, helped by titles like Heeramandi: The Diamond. Netflix said main Indian programs are Bazaar (15 million views), Indian drama series, and Amar Singh Chamkila (8.3 million views) as well as licensed films such as Laapataa Ladies and Shaitaan.
Saturation in US
Analysts warn that the streaming video giant is facing saturation in the United States. That’s why it plans to stop regularly reporting new subscriber additions next year.
Netflix said third-quarter subscriber gains would be lower than the comparable period in 2023 when it had just started the password clamp-down.
Netflix is revising its revenue growth to 14-15 percent (up from 13-15 percent) and an operating margin of 26 percent (vs. 25 percent previously) in 2024.
Content focus
Netflix and Google’s YouTube compete for people’s time and attention. Netflix says its movies and TV shows drive excitement and fan engagement on YouTube, as well as social media. Netflix believes that entertainment offering satisfies important needs for both consumers and the creators of movies and TV shows.
Fans have watched titles as “Bridgerton,” ”Baby Reindeer” and “The Roast of Tom Brady” – adding more customers to its streaming platform.
In Q2, the Bridgerton universe generated 172 million views. Bridgerton season 3 generated 98.5 million views. Under Paris, a buzzy shark horror movie from France, has generated 90.9 million views, Netflix said.
Other major titles include: Spanish investigative TV thriller The Asunta Case (31.3 million views), the crime series Crooks from Germany (15.7 million views), Queen of Tears (29.3 million) from Korea, the sci-fi action movie Atlas starring Jennifer Lopez (79.3 million views), Hit Man (33.2 million views) and City Hunter (16.5 million views), a live action adaptation of the Japanese manga.
Fans of Netflix are excited as it was the most nominated brand for the 76th Primetime Emmy Awards demonstrating the breadth and quality of its programming.
Advertising business
Netflix issued cautious guidance for the third quarter. Netflix said its advertising business would not become a primary driver of revenue growth until at least 2026.
“Netflix’s advertising business has yet to prove itself from a revenue standpoint. Our experts highlight that Amazon has made a much bigger splash in the ad market and Netflix needs to continue working on scale in this segment if it wants to be a major player,” Third Bridge analyst Jamie Lumley said.
Netflix said its ad tier membership grew 34 percent from the prior quarter, but it did not say how many subscribers chose that option.
“Our ad business is growing nicely and is becoming a more meaningful contributor to our business,” Netflix said in a letter to investors. “But building a business from scratch takes time – and coupled with the large size of our subscription revenue – we don’t expect advertising to be a primary driver of our revenue growth in 2024 or 2025.”
Gaming
Netflix, which started videogame initiative three years back, will release a multiplayer game based on “Squid Game” later this year when it debuts Season Two of the dystopian Korean series. It also plans games tied to “Emily in Paris” and “Selling Sunset.”
Baburajan Kizhakedath
