by Bianca Cartner
Online Entertainment Keeps Growing
Since firing up its streaming service 16 years ago, Netflix has enjoyed near-constant growth. Then they started offering original content in 2013, spearheading a whole video-on-demand industry. This came alongside other businesses that popularised online entertainment, best seen with video-sharing sites and those in the iGaming industry. Each rose to prominence by offering videos, live streams or hundreds of slots including interactive lobbies. Sites like YouTube and Paddy Power Bingo have built audiences that want on-demand content that’s accessible by an internet connection. The demand for this kind of entertainment has also formed the main appeal of Netflix over traditional media competitors.
Even among online entertainment, Netflix and video-on-demand streaming services enjoy a privileged position. While they are available online, many smart TVs and other household devices come with Netflix availability out of the box. Along with being widely available, they also put out Netflix original movies and TV shows that renew interest every few months.
Netflix Hits 247 Million Subscribers
That brings us to today, where Netflix has posted 247 million paid subscribers for Q3 of 2023. This is a high for the streaming service, which had been flagging in 2022 after losing subscribers to the tune of millions. Continuing into 2023, there were several things that caused doubt on Netflix’s future earnings success. Namely, the introduction of its password-sharing crackdown, reported here by USA Today.
Ever shared your Netflix password with a mate? Well, Netflix is now charging users who share accounts between households.
From today, the streaming giant will use the IP address of Australian users’ homes to determine if a device is based outside an account’s main household, and… pic.twitter.com/Pg0dgVhi6V
— 10 News First (@10NewsFirst) May 23, 2023
Since competition is growing in the streaming space, Netflix’s drive towards profit seemed to cast a shadow over the company. However, they have now emerged with back-to-back earnings growth for Q2 and Q3 of 2023. In Q3, nine million new users joined the platform with a paying subscription.
As for the numbers, they hit expectations exactly at $8.5 billion for revenue while tapering their budget to $1.7 billion (beating $1.9 billion expectations). The result is a technical profit and a big PR win for the company.
Netflix in Australia
While those middle financial quarters of 2023 were a success for Netflix, the streaming giant has had an unsteady few months in Australia. For instance, its Q2 2023 numbers saw a decrease in Aussie subscribers for the first time since they entered the market. This comes from an analysis of Australian subscription entertainment by Telsyte, who reported that use of all services increased by 3% to approximately 49.9 million people in June of 2023. However, Netflix experienced a -6% loss with 6.1 million subscribers.
The crackdown and increasing competition are predicted to be the cause of this slump. If previous rumblings from Spain and other crackdown markets are any indication, the reduction in Australian subscribers may be temporary. Ultimately, it means Netflix is still in an advantageous position as the leading streaming service in a growing market. Only time, and Netflix’s Q4 earnings report, will tell if Netflix’s growth continues in Australia and beyond.
