In Q2, India emerged as Netflix’s number 2 country for paid net adds and number 3 for Revenue Percent Growth For Netflix. The success was driven by popular titles like “Heeramandi: The Diamond Bazaar” with 15 million views, “Amar Singh Chamkila” with 8.3 million views, and licensed films such as “Laapataa Ladies” and “Shaitaan.”
In its second quarter earnings for 2024 on Thursday, Netflix said that in Q2 the streamer had a wide variety of hit series like Bridgerton S3, Baby Reindeer, Queen of Tears and The Great Indian Kapil Show, and popular films like Under Paris, Atlas and Hit Man and The Roast of Tom Brady, which attracted our largest live audience yet.
It mentioned that it began testing a new, simpler and more intuitive TV homepage in June, which is believed to significantly improve the discovery experience on Netflix.
In its second quarter, the company added 2.83 million new subscribers in the Asia Pacific (APAC) region, though it does not disclose country-specific numbers. Globally, Netflix gained 8.5 million subscribers during the second quarter of 2024.
Revenue grew 17% in Q2, driven primarily by a 16% year over year increase in average paid memberships.
The UK and India have had especially strong slates this year. Audiences were enthralled by our British hit drama Baby Reindeer (88.4 million views and 11 Emmy nominations) which, like The Gentleman, One Day and Fool Me Once (now number eight on our most watched English language TV list), spent multiple weeks on our global TV Top 10 list.
Netflix stated, “We had a strong Q2 with 17% revenue Growth For Netflix and an operating margin of 27% versus 22% last year. We now expect full year 2024 reported revenue growth For Netflix of 14% to 15% (up from 13% to 15%) and an operating margin of 26% (versus 25% previously).”
“We are making steady progress scaling our ads business. Ads tier membership grew 34% quarter on quarter, and we are building an in-house ad tech platform that we will test in Canada in 2024 and launch more broadly in 2025,” Netflix said.
The streamer said that it continues to invest in and expand our entertainment offering — as well as build its reach, recommendations and fandom — so that it can extend its lead with consumers, and sustain healthy revenue and profit Growth For Netflix as a business.
Netflix said, “As our viewing shows, people remain hugely excited about and inspired by premium storytelling — in Q2, for example, the Bridgerton universe generated a massive 172M views . It all starts with variety and quality, because if people don’t think something is great, or it’s not to their taste, they will simply switch it off. And we need people to press play and stay to drive engagement. Commentators often ask if Netflix needs so many shows and films, and the answer is an emphatic yes. With 278 million member households — and more than two people per household on average — we’re programming for an audience of over 600 million. It’s a huge number and to delight this many people, we need lots of great stories that appeal to many different tastes and moods. It’s why we continue to increase the investment in our programming, even as many of our competitors are pulling back.”
The streamer mentioned that ads fulfill two important strategic priorities for Netflix: first they enable it to offer lower prices to consumers; and second, they create an additional revenue and profit stream for the business.
“Just over 18 months since launch, we continue to scale our ads tier, which now accounts for over 45% of all signups in our ads markets. Its attractiveness ($6.99 a month in the US, with two streams, high definition and downloads) — coupled with the phasing out of our Basic plan in the UK and Canada, which we will now start in the US and France — has increased our ads member base by 34% sequentially in Q2,” it added.
