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Netflix at Comic-Con International in San Diego: quarterly sales of $8.8 billion

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Robyn Beck/AFP

With series like “The Crown” and films like “The Killer,” Netflix has attracted more customers than ever before in recent months.

The streaming service therefore announced double-digit percentage growth for the current year on Tuesday: "Despite the strikes by US screenwriters and actors last year, which delayed some premieres, we have great things in store for 2024."

According to the information, the number of users increased by 13.1 million to a total of 260 million in the past quarter.

The increase was almost half larger than expected, meaning that sales rose surprisingly sharply to $8.8 billion.

A downer was the disappointing net profit of $2.11 per share, which suffered from negative exchange rate effects.

Netflix titles still rose by six percent in after-hours trading.

Thanks to its attractive program, the US group enjoys the lowest churn rate in the entire sector, explained experts from the industry service Antenna Research.

In December only two percent of users canceled.

The reality show “Squid Game: The Challenge,” which is based on the hit series “Squid Game,” and the third season of the French crime comedy “Lupin” kept her engaged.

Netflix secures weekly wrestling show “Raw”

"It's becoming increasingly clear that Netflix has won the 'streaming wars,'" commented analyst Jessica Reif Ehrlich from Bank of America.

Many media companies are now reconsidering their previous strategy of offering films and series exclusively on their own streaming portals.

Analysts expect further tailwind from the company's intensified fight against the sharing of access data.

This alone could increase sales by five percent in the current quarter.

Netflix also has hopes for its advertising-financed access.

This business area is not yet the biggest growth driver, but this should change by 2025.

In the twelve markets where the cheaper subscription with advertising is available, 40 percent of new customers choose it.

In more and more countries, Netflix is ​​also eliminating the slightly more expensive but ad-free basic subscription.

As "The Verge" reports, it will next be removed from offers in Canada and Great Britain.

If you want to watch ad-free, you have to pay significantly more.

Last year, a profit of $5.4 billion remained in Netflix's coffers.

This is a stark contrast to the business of many other streaming services, which are often in the red.

For some competitors like Apple and Amazon, their actual core business generates so much money that they can easily accept losses in streaming.

Disney, Paramount and NBC as Hollywood studios and TV networks have made streaming a cornerstone of their business strategy, while cinema and traditional television are sometimes running bumpily.

With the wind at its back, Netflix is ​​now getting serious about live entertainment: The WWE league's weekly wrestling show "Raw" is moving to the streaming service after 30 years on linear TV.

The financial details of the deal were not disclosed - but according to information from the financial service Bloomberg, Netflix will cost the WWE programs five billion dollars over ten years.

The deal makes it clear how much the balance in the TV business has shifted in favor of streaming.

The US broadcasting group NBC is missing out on a reliable magnet for viewers and advertising - while sport is the most important reason for Americans to still afford an expensive cable TV subscription.

The wrestling league hopes to become more popular outside the US through Netflix's global base.

pbe/dpa/Reuters