The net income for the fourth quarter of 2023 is $937.8 million.
Netflix adds 13.1 million paid subscribers worldwide in the fourth quarter of 2023, with 2.91 million subscribers in the APAC (Asia and Pacific) region.
Netflix now has a total of 260.8 million paid subscribers. It is a new record for the service as it previously gained 7.7 million subscribers in Q4 of 2022.
Revenue in Q4 grew 12% year over year, or 13% on a foreign exchange neutral basis. Average revenue per member (ARM) was up 1% year over year on both a reported and F/X neutral basis, in-line with its expectations of “roughly flat year-over-year". ARM due to limited price increases over the last 18 months as well as price reductions in some countries early in 2023. These were partially offset by price rises in the US, UK and France in Q4'23, as mentioned by the company in a release.
In Q4’23, operating income amounted to $1.5 billion, up from $0.5 billion in the year ago period, while operating margin improved to 17% vs. 7% in the year ago quarter.
The company has not disclosed country-specific figures, it attributes success to its non-English language programming, citing examples such as The Railway Men from India, which garnered 11.2 million views, as a significant contributing factor.
Additionally, Netflix doesn't view ads as its primary revenue source in 2024 but it remains committed to expanding and enhancing that aspect of its business.
"In the fourth quarter, like the quarter before, our ads membership increased by nearly 70% quarter over quarter, supported by improvements in our offering (e.g., downloads) and the phasing out of our Basic plan for new and rejoining members in our ads markets. The ads plan now accounts for 40% of all Netflix sign-ups in our ads markets. We’ve added streams, higher resolution, downloads, it means engaging partner channels. You’ll see us do more than that," the company says.
While competitors in the streaming industry grapple with profitability challenges and reduce content expenditures, Netflix is poised to increase its content portfolio. However, it also clarifies that this expansion won't involve acquiring traditional entertainment firms or linear assets.
“As our competitors adjust to these changes, it’s logical to expect further consolidation, particularly among companies with large and declining linear networks. We’re not interested in acquiring linear assets. Nor do we believe that further M&A among traditional entertainment companies will materially change the competitive environment given all the consolidation that has already happened over the last decade," the company added.
Netflix has recently inked a $5 billion deal to stream World Wrestling Entertainment's Raw globally for 10 years, starting in January 2025.