Netflix has announced its revenue figures for the fourth quarter of 2022 which ended on 31 December. Brand Spur Nigeria understands that the streaming service revenue grew by 1.9% annually, with revenue figures of $7.852 billion, with an increase in average paid membership by 4%.
It experienced a 2% decline in average revenue per member but grew 5% on an F/X neutral basis.
The operating income for the 4th quarter was $550 million, which is lower than the income made in the same quarter in 2021 but above guidance was projected due to higher than expected revenue as well as slower than forecasted hiring, while the operating margin for Q4 amounted to 7% compared to 8% in the fourth quarter in 2021.
Compared with the 8.3 million made a year ago, paid net ads of 7.7 million is higher than forecast figures of 4.5 million for the beginning of quarter projection revenue. This was attributed to stronger adds to strong acquisition and retention, which was primarily driven by the success of Q4 content sales which included series Wednesday, which was its third most popular series ever, also the Harry & Meghan documentary series, which stood at the second most popular and Troll, the most popular non-English movie, while Glass Onion: A Knives Out Mystery was the company’s fourth most popular film.
Netflix Revenue Beats Projected Figures In Q4
Quarter four results also showed that 231 million paid memberships were recorded this year on Netflix and it generated $32 billion in revenue, $5.6 billion in operating income, and $ 2.0 billion of net cash.
Despite the bright ending of the fourth quarter for Netflix, the streaming service projects a 4% increased growth in Q1 2023 and it is expected that this growth will be propelled by both year-on-year growth in average paid membership and ARM. This, however, would describe a modest positive paid net ads in Q1 2023 as compared to the 200,000 dip in Q1 2022, which made them launch the advertising VOD offer.
However, Netflix has provided no official figures for Q1 2022, according to Ampere Analysis, it is expected that with the launch of its ad-supported plan on November 3, 2022. Netflix has recorded its highest daily subscription sign-up rate in the US since the start of the pandemic in April 2020.
This specifically, led to a 58% increase in the average sign-up volume for streamers from 3-5 November, compared to three days before the launch. The study also disclosed that Netflix’s new plan which is also available to subscribers now, 8% of sign-ups to Netflix or subscription plan change have taken the ad-tier.
2023 is already expected to shake up Netflix’s boardroom as Reed Hastings, handover the reins of CEO to former chief content officer Ted Sarandos and while former COO Greg Peters takes over as co-chief executive