Netflix surprisingly still managed to increase its users to a total of 231 million at the end of last year, after the company had previously struggled with declining user numbers. At the same time and despite this, one of the co-founders and bosses of Netflix, Reed Hastings, is stepping down.
More users again thanks to Harry & Megan
Netflix added 7.66 million users in the fourth quarter of 2022, an increase of 4 percent. Analysts had previously assumed around half, which is why the Netflix share was able to increase by around seven percent after the announcement of the quarterly figures.
The much-discussed documentation “Harry & Meghan” and the series “Wednesday” linked to the series and cinema films.
The price increase is also likely to have been due to sales of $7.85 billion, an increase of 1.9 percent compared to the fourth quarter of 2021. Subscriptions have therefore become less lucrative for Netflix, because sales did not increase in the same proportion as them user numbers. In EMEA in particular, this ratio is said to have fallen by 10 percent due to the fall in the euro exchange rate. Netflix' Margin is 7 percent, previously it was 8.2 percent. Fourth quarter net income fell to $55 million from $607 million but is expected to be $1.3 billion on sales of $8.2 billion in the first quarter of 2023.
Promotional subscription is worth more for Netflix than normal subscription
Netflix's new basic subscription, “Basic subscription with advertising”, which costs EUR 4.99 per month and launched on November 3, includes around 5 minutes of advertising per hour when playing. This is not so well received by many users, but for Netflix it is more profitable than the normal basic subscriptions, which are 3 euros more expensive. It should provide additional income in the future, even if Netflix itself only expects slow growth.
Fee for shared subscriptions is coming
The fee for shared Netflix accounts, i.e. password sharing, which has been speculated for a long time and recently tested in the first countries, is to be launched in other regions soon. Netflix plans to announce more details shortly. The amount of the fee is not yet known, but based on the test phase it can be assumed that 2.99 euros will be paid if you want to share your Netflix account.
Reed Hastings is leaving
At the same time, co-founder and co-boss Reed Hastings announced his resignation after more than two decades at the helm of the company. Ted Sarandos and Greg Peters will head up Netflix. Hastings will remain with Netflix, however, as he will join the board of directors as executive chairman.
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