Dan Goman’s Post

𝐍𝐞𝐭𝐟𝐥𝐢𝐱 𝐏𝐫𝐨𝐯𝐞𝐬 𝐈𝐭𝐬 𝐃𝐨𝐦𝐢𝐧𝐚𝐧𝐜𝐞 𝐀𝐠𝐚𝐢𝐧. Netflix has done it again, and the numbers speak for themselves. In Q3 2024, the streaming giant not only exceeded revenue expectations but also added more subscribers than anticipated— an impressive 𝟐𝟖𝟐.𝟕 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐮𝐬𝐞𝐫𝐬! (reaches over 10% of the world's population when considering its subscribers as households). What makes Netflix the Queen of Streaming? It’s not just their massive content library; it’s their agility, innovation, and strategic foresight. Here’s how they’ve continued to stay on top: 1️⃣ 𝐏𝐚𝐬𝐬𝐰𝐨𝐫𝐝 𝐒𝐡𝐚𝐫𝐢𝐧𝐠 𝐂𝐫𝐚𝐜𝐤𝐝𝐨𝐰𝐧: Tackling the long-standing issue of password sharing, Netflix’s efforts are paying off. By tightening policies and ensuring more accountability, they’ve effectively driven subscription growth. 2️⃣ 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐨 𝐒𝐩𝐨𝐫𝐭𝐬: For the first time ever, Netflix will air 𝐥𝐢𝐯𝐞 NFL games and WWE events. This move into live sports isn’t just a smart strategy; it’s a game-changer that broadens their audience base and keeps existing subscribers engaged. 3️⃣ 𝐒𝐭𝐫𝐨𝐧𝐠 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞: A 15% increase in revenue year-over-year and a significant rise in net income demonstrate that Netflix isn’t just a platform for entertainment—it's a business powerhouse. Looking ahead, Netflix plans to shift its focus to core financial metrics in 2025, emphasizing profitability and strategic partnerships over raw subscriber numbers. With new content partnerships and live sports deals, they hold their position as a leader in digital entertainment. #Innovation #Leadership https://lnkd.in/dMch_Pwv

BREAKING NEWS!!! 📰 Hey #mereditheconomics crew, gather around for the latest scoop in the world of streaming! 🎉 Netflix has just played its hand in the pricing game, announcing a new round of increases. 📈 Starting Wednesday, the premium ad-free plan in the US will climb $3 to $22.99, with the basic plan rising to $11.99. Hold on to your popcorn – this calls for some economic analysis! 🍿💸 First off, kudos to Netflix for a 9% YoY increase in paid memberships, reaching a whopping 247 million global subscribers. 🌐 The boost is partially credited to their crackdown on password-sharing. 💪 Fewer freeloaders mean more paying subscribers, making the price hike a calculated move. Now, let's dive into the economic nitty-gritty. With competitors like Disney+ and Max also upping their subscription fees, it's clear the streaming market is evolving. 💼 Studios are demanding more cash for their content, and production costs are soaring. The pandemic slump in demand is real, affecting revenue growth for streamers. So, what's Netflix's strategy? Price hikes. 📈📈 Enter the concept of inelastic demand – a.k.a. the Netflix effect. 🎥 Even as prices go up, the addiction to binge-worthy content remains, which causes quantity demanded to fall only slightly. Customers may grumble about price, but they mostly stick around 🤷🏽♀️ Check out the full saga here: https://lnkd.in/gf-diuux So, #mereditheconomics enthusiasts, what's your take on this Netflix rollercoaster? 💬👥 #streaming #economics #NetflixAnalysis

Netflix stock (NFLX) is up a resounding 50% since the start of the year, with its shares currently trading near the high end of their 52-week range. The biggest challenge ahead is keeping viewers engaged. With the rise of new competitors and changing viewer habits, Netflix needs to find innovative ways to keep its audience hooked. The article highlights that Netflix's subscriber growth has slowed down, and the company needs to focus on improving its content offerings to retain existing viewers and attract new ones. With the increasing competition from Disney+, HBO Max, and other streaming services, Netflix needs to stay ahead of the game. #Netfix #StockNews Netflix

🔍 Despite smashing Q1 earnings, Netflix’s stock dipped by 15% after announcing they are no longer reporting on subscriber numbers. In his latest op-ed for The Current, our Co-Founder, Joel Cox, argues that the real value of #Netflix extends beyond its sheer amount of subscribers. This pivot reflects a broader industry trend towards sustainability and diversified revenue streams, including ad-supported tiers. 🤔 Is Netflix ahead of the curve, or is Wall Street's skepticism warranted? Read Joel's full analysis here: https://lnkd.in/gRBpmMFm What's your take on this strategic shift? #ConnectedTV #CTV #OTT #StreamingMedia

Some first thoughts on #Netflix ’s latest numbers. The streaming leader is continuing to grow its base at an impressive, albeit slowing pace, taking its paid members total to just shy of 283m, up over 14% yoy. Revenue meanwhile was up 15% to US$9.8bn. ·     Subs growth is still strong despite the impact of the streamer’s ‘paid sharing’ initiative and crackdown on password sharing tailing off – but it is decelerating. ·     While Netflix wants to play down the subs number in future (and will stop reporting it next year) revenue growth is still mostly tracking subs growth, albeit with a bit more of a mix in the mature North American market and, in this quarter, LATAM (where a price hike led to a dip in subs). ·     The ad tier base is growing strongly, accounting for over 50% of sign-ups where it is available. Netflix says it is focusing on building scale, with revenue from ads still relatively low and an admission that it is still has “a lot of work to do” on the ad monetisation side, despite progress.   ·     With subs growth decelerating Netflix is continuing to talk up engagement – a metric designed to highlight low churn propensity and also to appeal to advertisers. Strong engagement is dependent on strong content, and co-CEOs Greg Peters and Ted Sarandos spend a lot of time talking up the content pipeline. ·     In practice Netflix is hedging its bets – keeping the ad tier price low while upping the price of premium tiers in selective markets – with Peters noting that the company is focused on “optimising long-term revenue” rather than driving up revenue per member. ·     Peters says Netflix is focused on gaining share of the 80% of viewing time not spent on Netflix or YouTube (even though the pair do compete for time), and Sarandos highlights the differences between the two – Netflix takes the risk of financing premium content while YouTube’s content creation is self-financing (with the potential reward of ad revenue for creators). ·     If the YouTube model raises interesting questions about the long-term future of content creation (and of premium content), the bottom line is that Netflix is still King of premium streamers – as its own bottom line shows, with no need (at least yet) to turn to old media tactics such as bundling (as Sarandos pointed out in the earnings call). #svod #streaming #advertising

As an ex-Flixer I found this announcement the most interesting part of Netflix's latest earnings - starting in 2025 neither quarterly sub growth counts or ARPU (they call it 'ARM') will be publicly reported by the streamer, instead putting more focus on 'engagement'. While I understand the logic behind the decision, it also makes the need for a common set of performance metrics to be used across all streamers. With all the major streamers having followed Peacock's lead into offering ad-supported plans, I suspect that advertisers would like common metric categories as well. #streaming #peacock #netflix #earnings #advertising

📈 Netflix's Stock is Soaring, But the Real Challenge Lies Ahead Netflix (NFLX) has surged 50% this year, with shares near a 52-week high. However, the real test lies in maintaining consistent viewership. With 94 billion hours watched from January to June and 39 million new subscribers, largely thanks to password-sharing crackdowns and an ad-supported tier, engagement remains crucial. The challenge? Year-over-year engagement is flat. As competition intensifies, keeping users engaged could be the key to Netflix’s long-term success. #Netflix #StreamingWars #InvestorInsight #TechIndustry #Business #BudgetingJourney https://lnkd.in/dCkSnC7v

Netflix, which started life in 1997 as a mail-only DVD service, reported another quarter of subscriber gains, taking its global total to almost 283 million, with user numbers in all four of the company’s major regions growing in the last 12 months. In countries where it is available, more than 50% of signups in the third quarter were for the company’s cheaper ad-supported tier. That result takes Netflix further ahead of its chief rivals, like Disney+, counting roughly 130 million more subscribers than its closest competition. Indeed Netflix’s real competition might actually be YouTube. In the six months leading up to July, 25% of all time spent streaming on US televisions was on YouTube, compared to ~20% on Netflix, according to data from Nielsen. With the most expensive Netflix package now costing $22.99 per month in the US, the company’s business model — which requires spending tens of billions of dollars on content every year — is starting to show the benefits of its scale. It turns out that raising prices, while still growing your customer base, is an unsurprising recipe for success: Netflix’s third quarter was the company’s most profitable in its history, with profits up 41% year on year. Using $11.60 monthly subscription figure as our starting point, what does that monthly subscription get spent on? A little more than six bucks, or just over half, gets spent on delivering the actual content. That’s the cost of licenses, production, and content delivery. Marketing takes another $0.76, technology and development costs $0.87, and general overheads cost almost $0.50, too. So out of your $11.60 monthly subscription, Netflix is left with a pretty tidy $3.44 in operating profit, which after interest expenses and taxes gets whittled down to $2.79, a still healthy 24% profit margin. #streaming #ott #svod #netflix #subscribers #economy #YouTube

📊 HarrisX - a Stagwell Inc. company/Variety EXCLUSIVE: Netflix's Ad-Supported Tier Gains Traction Results from the latest quarterly streaming survey by HarrisX, shared exclusively with Variety Intelligence Platform, unveil an intriguing trend: Netflix's ad-supported tier is swiftly becoming the second most common subscription plan among U.S. households, trailing only the cheapest ad-free option. Out of over 9,600 U.S. Netflix subscribers surveyed, 27% were on the "Standard with ads" plan, indicating a notable surge in adoption since its relatively muted launch about a year and a half ago. While exact global subscriber counts for the ad-supported tier remain undisclosed by Netflix, extrapolation from survey data suggests a potential domestic user base of around 22 million, considering the streaming giant's reported subscriber figures. Despite covering only U.S. respondents, this estimate offers valuable insights into the tier's growing significance in Netflix's strategy, particularly in its largest single-country market. By axing the ad-free "Basic" plan and clamping down on password sharing, Netflix signals a radical shift in its revenue strategy. As the streaming arena shifts towards engagement and ad revenue, Netflix's dive into ads is hitting its stride, paving the way for enduring growth in a cutthroat market. Read more from Variety's VIP+ here: https://lnkd.in/dwjCg2hh #Netflix #StreamingServices #AdTier #MarketInsights #SubscriptionPlans #DigitalMedia #HarrisXSurvey