☀️ NETFLIX Q3: The Good, Bad and Mysterious
A #MediaNerd🤓 dive into the Q3 2023 NETFLIX Numbers, and what's ahead in 2024
NETFLIX Q3 Subscriber adds boom past expectations… but Revenue doesn’t
Welcome to Q3 earnings season! As always, starting off with the world’s most popular streaming service, NETFLIX, which… apparently got a lot more popular in Q3 2023.
Under Promise/Overdeliver… again
NETFLIX blew subscriber predictions out of the water… both from analysts and its own broad forecast, adding +8.76 Million in Q3.
EMEA: About half of that subscriber growth was here (EUROPE / MIDDLE EAST / AFRICA), although no breakdown was given as to where exactly.
U.S./CAN: The Password Crackdown gave NETFLIX its biggest quarterly sub growth here since the start of the pandemic (Q2 2020).
BUT CURIOUSLY: Even though NETFLIX topped its Q3 subscriber addition forecast by almost +50%… it didn’t really exceed its Revenue forecast for the quarter 🧐.
Q3 revenue was +8% YoY instead of the forecast +7% YoY 🤷♂️ (and only about $42 Million more than the $8.5 Bil forecast).
WHY THE SMALL GAIN?
The additional subscriber growth came from lower ARPU regions.
Mix of people taking lower-priced packages was greater than thought.
HENCE: NETFLIX ARPU growth is challenged (avg. revenue per user): -1% YoY globally
NETFLIX calls ARPU “ARM” btw (avg. rev per member) - basically it’s their “fetch”.
WHAT TO DO? One main tactic…