Netflix adds 9m new subscribers as revenue soars at start of 2024

Profits at Netflix have surged as the world’s largest streaming service added millions of subscribers.

The entertainment giant added 9.3 million new viewers in the latest quarter – more than expected by analysts on Wall Street – leaving it with a record 269.6 million worldwide.

“We’re off to a good start in 2024,” the company said. Its shares dropped 2% during out-of-hours trading yesterday, however, after rallying by almost a third since January.

Revenue at Netflix rose 15% to $9.4bn (£7.7bn) in the three months to 31 March. Net income jumped 79% to $2.3bn over the same period, clearing analysts’ expectations.

Netflix pioneered the streaming revolution. Hollywood’s established giants, from Disney to Warner Bros, are still scrambling to catch up and turn a profit on their own rival digital services.

A boom in subscribers early in the pandemic stuttered in 2022 as restrictions were lifted. But shares in Netflix have surged over the past two years as it shored up growth by cracking down on password-sharing and introducing a cheaper tier of its service, with advertisements.

Netflix has also branched out to live events, including coverage of World Wrestling Entertainment, and videogaming.

In a letter to investors on Wednesday night, the company announced it would stop reporting how many members it has from next year.

As it has regained momentum following its post-pandemic growth struggles, Netflix has been trying to steer Wall Street’s focus away from its subscriber growth numbers, arguing that other financial metrics including sales were more important.

Forecasting sales growth of up to 15% this year, the company said to achieve “healthy” long-term growth it will need to “improve the variety and quality” of movies, shows and games on its platform; make it easier for users to find new series; and build its ad-funded tier into a “more meaningful contributor” to its business.