In February 2023, Netflix introduced a new policy regarding password-sharing. This policy entails an additional $7.99 monthly fee for sharing accounts with individuals outside the account holder's household.
Even though the company worried that this might make people cancel their subscriptions, recent data shows that more people signed up for Netflix instead of quitting.
Check out these 10 crucial Netflix statistics to understand this change and pick the best streaming service.
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Business Statistics
Founded by Reed Hastings and Marc Randolph, Netflix has evolved into the world's largest streaming service, boasting over 235 million subscribers worldwide.
While it started as a DVD delivery company, its transformation into a streaming giant began in 1998 when the website launched under the name Netflix, with around 900 titles.
Netflix's journey has transitioned from relying on price promotions to adopting more nuanced pricing strategies. Introducing a lower-priced tier with advertising reflects its effort to cater to diverse market segments.
Despite challenges in 2022, including subscriber declines and the need to address password-sharing, Netflix has re-emerged stronger.
Keep reading to dive into the key business stats that maintain Netflix at the top of the streaming industry in 2023.
1. Netflix has 238.4 million subscribers by 2023's Q2
Netflix increased its user base, with 5.9 million new subscribers joining the service worldwide by 2023’s Q2. That pushed the total number of the platform’s subscribers to 238.4 million.
This significant growth was a pleasant surprise, surpassing industry expectations, which had predicted an increase of only 1.7 million subscribers.
To put it in perspective, just a year earlier, Netflix had faced its largest-ever quarterly loss, shedding 970,000 subscribers.
2. Wednesday's first season is Netflix's most-watched original production in 2023, with 1,806,850,000 hours of views
Netflix's 2023 lineup has seen some remarkable successes, and leading the pack is "Wednesday," the platform's most-watched original production of the year.
Since its November 2022 release, it has accumulated a staggering 1.8 billion viewing hours and maintained a presence in the global top ten list for 20 consecutive weeks, making it the most significant English-language Netflix Original.
In second place is "Glass Onion: A Knives Out Mystery," featuring Daniel Craig. This movie, which initially had a successful limited theatrical release, continued its triumph on Netflix, amassing over 300 million viewing hours.
The top three is "The Mother," released in May 2023. This Spring hit emerged as the most-watched movie on Netflix among the titles released this year.
3. 23.82% of Netflix's traffic comes from the U.S.
Despite a 3.22% drop in visits from August to September 2023, when it comes to Netflix's global traffic, the U.S. takes the lead, contributing a substantial 23.82% of the platform's visitors, according to Similarweb data.
Following behind is the United Kingdom with 5.75%, Brazil with 5.57%, Canada with 4.72%, and Germany with 4.33%.
4. Netflix planned to cut its spending by $300 million in 2023
The Wall Street Journal reported that Netflix has set its sights on cost reduction to optimize its financial performance, with plans to trim expenses by $300 million in 2023.
While Netflix has encouraged its staff to exercise prudence in spending, emphasizing sensible choices, there won't be a hiring freeze or additional layoffs.
It's important to note that while $300 million may seem like a substantial cut, it represents only a fraction of Netflix's overall expenses, with the company's operating expenses in the previous year reaching approximately $26 billion.
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5. Netflix reported $8.2 billion in revenue and $1.5 billion in net income in 2023's Q2
In the second quarter of 2023, Netflix's financial report revealed a substantial uptick in revenue, totaling approximately $8.2 billion, marking a 2.7% increase compared to the same period in the previous year.
This surge in revenue responds to the notable increase in subscribers. Netflix also reported a net income of $1.5 billion, a slight rise from the previous year's $1.4 billion.
While the company's revenue slightly fell short of analysts' expectations, it exceeded profit estimates, reaching $1.29 billion.
6. Netflix's paid sharing in over 100 countries impacted over 80% of its revenue
The introduction of paid sharing rules increased Netflix's subscribers. In May 2023, the streaming giant successfully implemented these rules in over 100 countries, accounting for over 80% of its revenue base.
Now, Netflix is extending this policy to nearly all remaining countries, including Croatia, Kenya, Indonesia, and India.
The impact of this restriction is striking, with Netflix gaining nearly 100,000 daily signups following the crackdown on password sharing.
7. Netflix's ad plans accounted for 17-20% of new signups from March to June 2023
According to Antenna, a market tracking source, Netflix's ad-supported plans, precisely the Standard with Ads, attracted a significant portion of new signups, making up approximately 17-20% of the total new subscribers this quarter.
In June 2023, this surge in ad-supported plan signups reached its zenith, with over 3.5 million new subscribers, marking one of the highest monthly acquisition rates ever recorded for Netflix.
While the platform did experience an increase in cancellations in June, the rate remained substantially lower than the rate of new additions.
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Usage Statistics
According to studies regarding Netflix binging, South Americans lead the pack, with Peru earning the title of the "biggest binge-watchers." Peruvians have spent an impressive 118,776 minutes on Netflix since they first signed up, equivalent to 1,980 hours or 82 days, almost double the average.
Argentinians are close behind, with an average of 108,476 minutes of Netflix consumption. Chile, Mexico, and Brazil also rank among the top countries, each surpassing 95,000 minutes on average.
In contrast, Qataris fall on the other end of the spectrum, watching less than half the average Netflix viewer, clocking in at 30,811 minutes on average.
Here are the main Netflix usage statistics in 2023:
8. Netflix's site audience is 51.12% male and 48.88% female
Netflix's website audience is currently divided, with 51.12% male users and 48.88% female users, as shown in Similarweb.
This figure marks a slight shift from 2021, when the average Netflix user was slightly more likely to be female.
Additionally, the largest age group among visitors falls within the 25 to 34-year-old bracket.
9. Netflix dominates 15% of global Internet traffic in 2023
In a recent report by Sandvine, the world's top web applications driving downstream internet traffic have been revealed.
Leading the pack is Netflix, responsible for 14.9% of global internet traffic, underscoring the immense popularity of streaming services.
YouTube follows closely behind, accounting for 11.4%, while Disney+ holds a significant share with 4.5%. Not to be left behind, Amazon Prime Video contributes 2.8% to the global downstream internet traffic.
In addition to streaming, social media and gaming play a substantial role, with TikTok, Facebook, Playstation, and Xbox generating substantial internet traffic in 2022.
10. Netflix has a 7.9% TV viewership, second to YouTube
Two streaming giants stand tall in the crowded realm of Smart TVs and Connected TV devices, where options abound. YouTube and Netflix continue to dominate, with YouTube claiming 8.5% of total TV viewing in May, closely followed by Netflix at 7.9%.
According to Forbes, Hulu and Prime Video garnered less than half of these percentages. Even among the prominent media company streaming services, none could secure more than 2% of TV viewership.
On the other hand, according to Nielsen, HBO Max and Peacock trailed behind the "free ad-supported TV" service Tubi.
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Summary: Netflix Statistics
1. Netflix has 238.4 million subscribers by 2023's Q2.
2. Wednesday's first season is Netflix's most-watched original production in 2023, with 1,806,850,000 hours of views.
3. 23.82% of Netflix's traffic comes from the U.S.
4. Netflix planned to cut its spending by $300 million in 2023.
5. Netflix reported $8.2 billion in revenue and $1.5 billion in net income in 2023's Q2.
6. Netflix's paid sharing in over 100 countries impacted over 80% of its revenue.
7. Netflix's ad plans accounted for 17-20% of new signups from March to June 2023.
8. Netflix's site audience is 51.12% male and 48.88% female.
9. Netflix dominates 15% of global Internet traffic in 2023.
10. Netflix has a 7.9% TV viewership, second to YouTube.
Final Thoughts
Netflix stays popular in the streaming market by making lots of original shows and having big hits like "Wednesday," "Bridgerton," "The Witcher," and "Stranger Things."
Even with tough competition, Netflix is still a big deal, making up nearly 15% of the internet's traffic, allowing the service to charge more for its service and making other companies want to make their original shows, too.
But Netflix changed some rules. It's important to note recent policy changes, such as stringent password-sharing regulations and the discontinuation of the ad-free Basic plan, may influence Netflix's appeal to specific user segments.
However, that hasn't stopped the user base from increasing on the platform, and the service still offers diverse content, exceptional video quality, broad app compatibility, and a user-friendly interface tailored for children.
Consequently, it holds a significant position in the streaming industry, always providing something for everyone to watch.
FAQ
How much of Netflix's content offerings in the U.S. is original?
Netflix's approach to original programming has evolved significantly over the years. In 2016, only 4% of its U.S. content offerings were original productions.
By 2018, this figure had jumped to 11%. As of summer 2022, over 50% of Netflix's content is original, projected to reach 75% by the end of 2024.
Can I share my Netflix account with someone who doesn't live with me?
Netflix accounts are intended for sharing among people living in the same household.
If someone outside your home wants to watch Netflix, they should sign up for their account. Alternatively, you can purchase an extra membership in many countries for $7.99 to add someone to your account.
How can I download TV shows and movies from Netflix to watch offline?
To download TV shows and movies from Netflix and watch them offline, make sure your device has the latest updates installed and follow these steps:
- Open the Netflix app.
- Browse available TV shows and movies.
- For iPhone, iPad, Android, or Fire devices: Tap "My Netflix" > "Downloads" > "See What You Can Download."
- For Windows computers: Click the More menu icon (three horizontal lines) on the left > "My Downloads" > "Find Something to Download."
- For Chromebook: Click "Downloads" > "Find More to Download."
- Select the TV show or movie you want to download.
- For movies, select the Download icon.
- Select the download button for TV shows next to each episode you want to download.
- Android devices and Fire tablets may also have a "Download Season" button.
You can have up to 100 active downloads per device, based on the number of devices included in your Netflix plan.
If you cancel your Netflix account, downloads on your device will be deleted. If you restart your membership, you'll need to download them again.
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Sources
- In a shocking turn of events, Netflix subscriptions rise after password-sharing crackdown
- Netflix Ending DVD Service: Streaming Platform's History
- Netflix gains nearly 6M subscribers as paid sharing soars | TechCrunch
- Netflix loses 970,000 subscribers, its largest quarterly loss ever | TechCrunch
- Most Watched Netflix Originals on Netflix in 2023 So Far
- netflix.com Traffic Analytics, Ranking Stats & Tech Stack | Similarweb
- Netflix Plans to Cut Spending by $300 Million in 2023 - WSJ
- Netflix adds 5.9 million subscribers. Ted Sarandos says strike 'not an outcome that we wanted'.
- Netflix 2Q23 Preview - Antenna Blog
- Chart: Netflix is Responsible for 15% of Global Internet Traffic | Statista
- Which country watches the most Netflix? - Comparitech
- Summer 2023 Streaming: YouTube & Netflix Vs. The Field