Netflix Subscribers Spend Two Hours a Day on the Platform, Reports Strong Growth

Netflix reports that its subscribers spend an average of two hours per day on the platform, a notable increase in household viewership compared to last year. This data was highlighted in Netflix's third-quarter earnings report, where the company also revealed significant growth and financial success. In the past few months, Netflix generated $9.83 billion in revenue and $2.91 billion in operating income. Additionally, the platform added around 5 million new subscribers, reaching a total of 282.7 million globally. Remarkably, about half of the new subscribers in the third quarter of 2024 opted for the ad-supported plan, signalling a shift in user preferences.

Netflix currently represents just under 10% of total TV usage in its largest markets, but the company sees room for expansion. The streaming giant believes that by continuing to offer high-quality TV shows and movies, it can increase its share. Upcoming content, including Squid Game season 2, the final season of Arcane, and an animated Witcher movie, promises to keep viewers engaged.

“Programming for such a large, engaged audience, with so much variety and great quality, is hard,” Netflix’s letter to investors says. “It’s why streaming services which lack our breadth of content are increasingly looking to bundle their offerings... Netflix is already an extraordinary package of series and films (licensed and original), and increasingly games and live events.”

During an earnings call, Netflix co-CEO Greg Peters announced plans to roll out a platform redesign that was tested earlier this year. “We’re excited with the progress that we’ve seen there, so we’re polishing it up,” said Peters. This update is expected to enhance user experience globally. Starting in 2025, Netflix will no longer report quarterly subscriber counts, as it shifts focus to other revenue streams like advertising and paid sharing. Although Netflix does not expect ads to drive significant revenue growth next year, the company says it is “scaling faster than our ability to monetize our growing ad inventory.”

In addition to its $7.99 per month paid sharing option, Netflix is expanding its content library with live events such as WWE Monday Night Raw and the upcoming Mike Tyson vs. Jake Paul boxing match. The company has also increased its offering of interactive games for subscribers.