Netflix streaming added more than 8 million subscribers in the second quarter of 2024, compared to analysts' forecasts of 5 million. At the end of June, thanks to new registrations, the total number of Netflix subscribers in the world exceeded 277 million, Reuters reports.
The streaming service has benefited from the fight against password theft, and the popularity of Bridgerton, Baby Reindeer, and The Roast of Tom Brady has also had a positive impact.
Netflix also said that the number of subscribers to its ad-supported plan grew by 34% compared to the previous quarter. However, the streaming service did not specify how many subscribers chose this option.
At the same time, Netflix predicts that the advertising business will not be the main driver of the company's revenue growth until at least 2026.
"Our ad business is growing nicely and is becoming a more meaningful contributor to our business," Netflix said in a letter to investors. "But building a business from scratch takes time - and coupled with the large size of our subscription revenue - we don't expect advertising to be a primary driver of our revenue growth in 2024 or 2025."
Third Bridge analyst Jamie Lumley believes that Netflix's advertising business "has yet to prove itself in terms of revenue." They say that Netflix should continue to work on scaling in this segment if it wants to be a major player.
It has recently become known that Netflix is discontinuing its cheapest ad-free plan for $11.99. Some users have already faced the requirement to choose a new tariff plan instead of the basic one to continue using the service.