Netflix, the global streaming powerhouse, reported a significant milestone in its latest quarterly report, with 8.76 million new subscribers making it a total of 247 million paying households now subscribing to its services.
The company’s performance in the third quarter of the year was particularly impressive, as it welcomed 8.76 million new paid members from around the world. This marks a substantial 10.8% year-on-year increase, representing the most significant quarterly growth since the remarkable surge in Q2 2020 when Netflix added 10.1 million subscribers in just three months, as people worldwide sought entertainment options during the pandemic-induced lockdowns.”
WARC report that the streamer claimed it was able to “generate higher engagement than competitors”. In the US, Netflix’s share of TV screen time was 8% in September, ahead of all streamers except YouTube. Its ads plan continues to grow as the company reinforces its ambition to “scale this business”: ads plan subscriptions increased 70% quarter-on-quarter. In countries where ad plans are available, one-third of the signups on average went to the ads plan.
While precise figures of ad subscribers weren’t disclosed, Netflix revealed in a virtual upfronts event in May this year that nearly five million users had signed up for its ad-supported tiers. According to Brian Wieser from Madison and Wall, this group likely represents a small percentage of Netflix’s total subscribers, and their ad-supported viewing is expected to be even less due to Netflix’s lighter ad load.
READ ALSO: Netflix Records 6.7M Global Subscribers
As major streaming companies prepare to release their Q3 earnings and guidance for the last quarter of 2023, the Gauge by Nielsen reported a decline in overall US streaming viewership for the second consecutive month, though it still accounts for over one-third of all video viewing. Notably, the TV series “Suits,” which Netflix recently licensed and premiered, achieved a significant milestone with 8 billion minutes of viewership in September, as acknowledged by both Nielsen and Netflix.
Broadcast TV viewing experienced a notable increase of nearly 13% in the past month, mainly due to the return of sports events in the US. Another major streaming platform that saw growth was Prime Video, with a 7.5% increase in viewership, primarily attributed to NFL Thursday Night Football. Nielsen anticipates that sports, especially the new NHL and NBA seasons, will continue to be a significant factor in video consumption patterns, potentially affecting TV viewing behaviour.
Netflix has also announced various changes in its advertising formats, such as the introduction of live sports sponsorship and single-title sponsorships. They have introduced a “binge” product, allowing advertisers to target ad-tier subscribers who indulge in binge-watching habits.