Netflix has reported a 15% year-on-year revenue increase in its Q3 results, while the Asia-Pacific (APAC) region saw over 19% growth due to a strong local content slate in India, Japan, Kora and Thailand.
Despite Netflix’s steady global streaming revenue growth, the APAC region including India, added $1.128 billion to its total in Q3 2024.
The streaming platform boasts a global audience of over 600 million. In the APAC region, paid memberships reached 52.6 million in Q3 FY24, reflecting an increase of 2.28 million from Q2 FY24. Notably, India recorded the second-highest number of subscriber additions globally in the second quarter of FY24.
The global streaming giant said, “For 2024, we expect revenue growth of 15% (the high end of our 14% to 15% range), and operating margin of 27% (vs 26% previously).”
“We continue to build our advertising business and improve our offering for advertisers. Ads membership was up 35% quarter on quarter, and our ad tech platform is on track to launch in Canada in Q4 and more broadly in 2025,” it added.
It highlighted that average paid memberships increased 15% year over year as paid net additions in Q3 were 5.1 million versus 8.8 million in Q3 2023.
“For Q4 2024, we forecast 15% revenue growth, or 17% on a F/X neutral basis. We expect paid net additions to be higher in Q4 than in Q3 2024 due to normal seasonality and a strong content slate. We project Q4 operating margin of 22%, a five percentage point year-over-year improvement,” Netflix said.
“Our fourth quarter guidance implies that revenue will grow 15% year over year for the full year 2024, at the high end of our prior 14%-15% revenue growth expectation. Given the slightly higher revenue forecast, we are now forecasting 2024 operating margin of 27% based on F/X rates as of 1/1/24 and on a reported basis, up from 26 previously. This would represent a six percentage point increase compared with the full year 2023,” it added.
The streaming giant stated that as it heads into 2025, it expects to deliver solid revenue and profit growth by both improving its core series and film offering while investing in new growth initiatives like ads and gaming.
It pointed out, “Engagement on Netflix is healthy: around two hours a day per paid membership on average, despite the impact of paid sharing. As we have discussed before, paid sharing led to lower viewing on accounts that were shared as fewer people were watching them. In addition, when sharers bought their own subscriptions, much of that viewing was already reflected in hours viewed (impacting the trend in view hours per membership). When you isolate owner households (which excludes the impact of paid sharing), view hours for those owner households rose year over year in the first three quarters of 2024.”
