Netflix gains 8 million subscribers worldwide thanks to price hikes and push for ad-supported streaming

According to Netflix’s second-quarter earnings report, the company has added more than 8 million paying members worldwide since April. That massive spike has pushed the total number of paying subscribers worldwide from 238 million to a staggering 278 million — or about 16.5 percent growth, year over year.

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Meanwhile, ad-supported plans are seeing a 34 percent gain in subscribers from Q1 to Q2 of 2024. This increase, then, complements Netflix’s continued scaling of its ad-supported plans, which have lower price points than its ad-free tiers. Netflix dropped its most affordable ad-free “Basic” plan tier late last year. That transition began in July, when the company began alerting customers in both the U.K. and Canada that they would need to switch plans now as part of the change.

image 4 197 Netflix gains 8 million subscribers worldwide amid price hikes and push for ad-supported streaming

The US charged $9.99 per month for a Basic subscription, but now Americans can sign up for the cheaper, ad-free alternative for $15.49 per month. Netflix initially allowed existing Basic subscribers to keep their subscriptions, but has slowly been removing that option.

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This tier costs $6.99 per month and serves four to five minutes of ads per hour. These 15 to 30 second ads run before and during TV shows and movies and are short with a quick call to action. Netflix also plans to test a new proprietary ad technology platform in Canada and expects it to have broad support by 2025.

image 4 198 Netflix gains 8 million subscribers worldwide amid price hikes and push for ad-supported streaming

From a financial perspective, Netflix has reported 17 percent year-over-year revenue growth and is forecasting a full year of 14%-15% growth through the end of the decade. It also expects its ad-supported membership to continue to grow and plans to make ad revenue a more meaningful part of the business as the years go by. This comes after Netflix changed its strategy in favor of diversifying its revenue streams and making itself more fungible given the current circumstances.