Netflix amasses £1.4bn British subscribers as eyes turn to upcoming Titan results

Sunday 09 October 2022 13:03

Netflix raised nearly £1.4bn last year from its British subscribers, in the first tranche of publicly released figures for the country.

The US streaming titan said it racked up £1.38bn in revenue for the year ending December 31, 2021, in annual accounts filed in London late last week.

After previously including UK numbers with its accounts in the Netherlands, this is the first time the tech company has disclosed its stats for UK subscribers separately.

Netflix recently took a hit to its global subscriber army, announcing in July that it had lost almost 1 million (970,000) subscribers between April and June.

The economic crisis and viewers’ lives returning to pre-pandemic normality caused subscribers to cancel their memberships en masse.

Its third-quarter results later this month will reveal whether the tech company has been able to meet its new customer estimates of around 1 million from July to September. Wall St analysts had previously put this number at 1.84 million ahead of the company’s latest results in July.

Accounts filed in London showed the California giant’s arm with respect to UK subscriptions produced a pre-tax profit of £27.9m. Netflix also contributed £5.2m in taxes to the Treasury in the period.

Earlier in March this year, the streaming service increased the cost of its plans by £1, with its basic plan rising to £6.99 and its standard plan rising to £10.99.

Around 17 per cent of Britons are cutting back on subscription-based services including Netflix and Amazon Prime, according to data released by software company Sitecore.

“Increased competition makes subscribers agile in their search for quality and price, which means companies may face increased volatility in subscribers during a downturn and may need to cut prices to maintain consumer loyalty. , which will ultimately affect profit margins,” noted Walid Koudmani, Chief Market Analyst at XTB. at the beginning of this year.

speaking to CityA.M. In August, Koudmani said Netflix had managed to cut a steeper drop in subscribers thanks to a “hugely successful” fourth season of hit sci-fi show Stranger Things.

However, he warned that Amazon’s long-awaited Lord of the Rings series could “exacerbate the decline in Netflix subscriber growth.”

Netflix’s third quarter results are expected on Tuesday, October 18.

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