Netflix Exceeds Projections with 9.33 Million New Subscribers in Q1, Hitting Nearly 270 Million Total

By Leira Aquino

Apr 19, 2024 12:28 AM EDT

Netflix has exceeded expectations by adding a noteworthy 9.33 million subscribers in the first quarter of 2024.
(Photo : MARTIN BUREAU/AFP via Getty Images)

Netflix has surpassed expectations with a remarkable addition of 9.33 million subscribers in the first quarter of the year, the company reported on Thursday.

The surge in subscribers has propelled Netflix's total count to 269.6 million, significantly exceeding Wall Street's anticipated figure of 264.2 million.

Netflix Sees Slight Subscriber Growth Slowdown Despite Exceeding Expectations

Despite exceeding Wall Street's estimates for subscriber growth, Netflix experienced a slight slowdown compared to its exceptional performance in the previous quarter when it added 13 million subscribers, as previously reported by VCPost.

This slowdown, while expected due to typical seasonality, did not diminish the overall positive trajectory of Netflix's expansion.

In addition to subscriber growth, Netflix reported robust financial figures for the first quarter, with revenue reaching $9.37 billion and earnings per share standing at $5.28, both surpassing Wall Street's projections, according to ABC News.

However, the stock faced a temporary setback in after-hours trading following the earnings report.

Netflix's strategic moves, such as tightening rules on password sharing and offering new pricing options, have significantly contributed to its impressive growth.

Netflix started enforcing its crackdown on password sharing last year, a strategy announced in 2022. The company started restricting sharing to members within the same household. 

Users can extend access to others outside their household for an additional fee per month, or they can utilize the "transfer profile" feature, prompting additional users to create and pay for their own accounts.

READ NEXT: Netflix Stocks Climb as Subscriber Gains Break Wall Street's Expectations

Netflix Focuses on Diversification, New Revenue Models

Netflix's evolution goes beyond subscriber numbers; the company is strategically diversifying its offerings and revenue streams. 

This includes venturing into live sports programming, video games, and expanding its content library through licensing deals with other providers, according to CNN.

Netflix's co-CEO Greg Peters emphasized the importance of these new revenue models, stating that they are "developing our revenue model and adding things like advertising and our extra member features."

Despite reaching a new record high in total subscribers, Netflix announced on Thursday that it will no longer share quarterly subscriber numbers starting in 2025.

READ MORE: Netflix 3.0 Is Coming: Discover the Brains Behind the Streaming App's Groundbreaking Change

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