Streaming giant Netflix added 5.07 million new subscribers in the second quarter of 2023, reaching 282.72 million paid memberships worldwide. The company's total revenue for the quarter came in at $4,322 million, representing a 15% increase year-over-year.
Netflix's revenue in the EMEA region grew by 16% year-over-year, reflecting a rise in average paid subscriptions, which now stand at 96.13 million. This strong growth underscores Netflix's continued dominance in the European market.
Despite the success, Netflix's Co-CEO, President & Director Ted Sarandos has dismissed any potential for bundling with its rivals. "It's a comfortable business model for legacy media companies," he said during an investor call. "And kind of given the narrow scope of the libraries on these services and the fairly limited engagement, it makes sense for them to kind of replicate some of the older media models of kind of creating these bundles."
Sarandos highlighted Netflix's focus on enhancing its own offerings, citing recent additions like the Tyson-Paul fight, NFL football on Christmas Day, and WWE programming. These exclusive events and content aim to strengthen Netflix's value proposition and attract new subscribers.
Netflix's two-year-old advertising plan is gaining traction, accounting for 50% of new sign-ups in the markets where it is available. The ad-supported plan saw a 35% quarter-on-quarter growth, indicating positive user response. Netflix is reportedly satisfied with subscriber engagement on its ad plan, which is on par with its standard plan in the 12 countries where it is offered.