Netflix added 8.05 million global streaming paid memberships in the second quarter of 2024, bringing its total to 277.65 million. The quarter ended June 30, and Netflix announced the results on July 18. The increase beat the company’s forecast of about 5 million additions. “Subscribers” is common shorthand, but Netflix reports paid memberships: net additions after cancellations, not gross sign-ups or a count of individual viewers.
How strong was Netflix’s Q2 result?
The 8.05 million additions were more than the 5.0 million Netflix had forecast, a difference of about 3.05 million, or 61%. Reuters also reported that the result exceeded analyst expectations, which were around 5 million; analyst estimates are external forecasts, not an official company target. Netflix’s Q2 2024 shareholder letter gives the company forecast and reported result, while Reuters’ report syndicated by Investing.com describes the analyst comparison.
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| Period | Paid net additions | Context |
|---|---|---|
| Q2 2023 | 5.89 million | Comparable year-earlier quarter |
| Q1 2024 | 9.33 million | Immediately preceding quarter |
| Q2 2024 | 8.05 million | 16.5% year-over-year growth in paid memberships at quarter-end |
Q2 additions were higher than a year earlier but lower than Q1 2024. That comparison matters: the result was a substantial beat, but it does not by itself show that quarterly additions were accelerating in a straight line.
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Netflix reported the following regional additions for the quarter. The regional figures are reported in thousands in the company’s filings; the table converts them to millions.
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| Region | Q2 2024 net additions | Year-over-year membership growth |
|---|---|---|
| United States and Canada | 1.451 million | 11% |
| Europe, Middle East and Africa | 2.235 million | 18% |
| Latin America | 1.530 million | 16% |
| Asia-Pacific | 2.829 million | 24% |
| Total | 8.045 million | 16.5% globally |
Asia-Pacific was both the largest source of additions and the fastest-growing region by percentage. EMEA added more memberships than the United States and Canada. On these rounded regional figures, UCAN supplied about 18% of global additions; most came from outside the United States and Canada. Regional membership growth does not mean every region generated the same revenue per membership: average monthly revenue varies by market and plan. See Netflix’s Form 10-Q for the quarter ended June 30, 2024.
What may have supported the increase?
Programming drew attention, but Netflix did not assign sign-ups to individual titles
Netflix highlighted a range of Q2 releases and events, including Bridgerton Season 3, Baby Reindeer, Queen of Tears, The Great Indian Kapil Show, Under Paris, Atlas, Hit Man and The Roast of Tom Brady. The company said the roast had attracted its largest live audience to that point. These are examples of programming Netflix pointed to, not a title-by-title explanation of the 8.05 million net additions; it did not disclose how many memberships any one show generated. Reuters also linked the quarter’s performance with popular programming.
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Paid sharing was a contributor, not a complete explanation
Netflix had been extending measures that ask people outside a household to pay for an extra member or start their own account. Reuters characterized the crackdown as one factor benefiting growth. It is plausible that some former account borrowers converted to paid memberships, but Netflix did not quantify that contribution. Content, international expansion, pricing, seasonality and the ad-supported plan also form part of the broader context, so the available figures do not support saying that enforcement alone caused the additions.
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Netflix said ad-tier membership grew 34% quarter over quarter in Q2 2024. It did not provide an absolute ad-tier membership count in the shareholder letter, so the figure does not reveal how many of the quarter’s net additions chose that plan. At the time, Netflix described advertising as a growing but relatively small business compared with subscription revenue. It was developing its own advertising-technology platform, with a test planned in Canada during 2024 and a broader launch planned for 2025. Reuters reported management’s view then that advertising would not become a primary revenue-growth driver until at least 2026; that was a period outlook, not a guarantee.
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What did membership growth mean for Netflix’s finances?
Netflix reported Q2 revenue of $9.559 billion, up 16.8% year over year. Operating income was $2.603 billion, and the operating margin was 27.2%, compared with 22.3% in Q2 2023. Net income was $2.147 billion, diluted earnings per share were $4.88, and free cash flow was $1.213 billion. The SEC-filed shareholder letter says revenue growth was driven primarily by a 16% year-over-year increase in average paid memberships, as well as pricing effects and foreign-exchange factors.
Membership additions help explain the size of the audience base, but they are not equivalent to revenue or profit. Plans and prices differ across markets; a lower-priced ad plan can have a different revenue mix from a standard subscription; exchange rates affect reported results; and operating costs shape how much revenue becomes income. Netflix’s 16.8% revenue growth and 16.5% year-over-year membership growth were similar rates, not a one-for-one relationship between each added membership and dollars earned.
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What did Netflix expect after Q2?
In July 2024, Netflix forecast Q3 revenue of $9.727 billion, 13.9% year-over-year growth, operating income of $2.730 billion, a 28.1% operating margin, net income of $2.237 billion and diluted EPS of $5.10. Those were forecasts made at the time, not current guidance. Netflix also expected Q3 paid net additions to be lower than a year earlier, partly because Q3 2023 had benefited from the first full quarter of paid-sharing effects. The company’s July 18 earnings event page links to its investor materials.
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- Unlimited movies, TV shows, and more. Watch anywhere. Cancel anytime.
- Give the gift of entertainment so your friends and family can stream unlimited films and Netflix original series. Whether your loved one already has a Netflix account or they will be creating a new account, they can use a Netflix gift card toward their membership.
- No credit card is required to redeem a gift code.
- Codes are applied to your account as a gift balance. Gift codes can be added to any plan, regardless of the amount.
- Redemption: Online
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