Paid net subscriber additions of Netflix worldwide 2014-2024

In the third quarter of 2024, Netflix could add over five million new subscribers worldwide. This marks a positive turnaround for the streaming service, following a decline in net subscriber additions during the first two quarters of 2022, which was attributed to factors such as rising subscription costs and increased competition from more affordable, ad-supported streaming options.

Shifting subscriber trends and revenue streams

The customer churn at the beginning of 2022 prompted Netflix to introduce an ad-supported tier later in the year. This strategy seems to have paid off, as a recent study in the U.S. revealed that the addition of a basic plan with ads led to a significant increase in new subscriptions, accounting for 30 percent of total Netflix sign-ups in September 2023. Furthermore, while the subscription revenue of the streaming giant is expected to decrease in the coming years, the advertising revenue is forecast to grow, indicating the rising value of hybrid business models in the streaming market.

Netflix’s content strategy

Netflix's strategic focus on original TV programs appears to resonate well with American audiences. According to a survey from the third quarter of 2023, the majority of U.S. Netflix users preferred watching own productions over other content, demonstrating that content plays a crucial role in retaining and attracting subscribers. Additionally, the company's effort to expand its global influence has been evident, with Netflix increasingly investing in regional content to maintain its position as the leading video streaming service worldwide.