In 2022, Netflix made $7.97 billion in revenue. In 2020, Netflix’s net income was $2.2 billion. This was a 37.5% increase from 2019. Netflix charges users a monthly subscription fee. This is where they make their profit.
Netflix’s Earnings and Strategy
In April 2023, Netflix Co-CEO Ted Sarandos announced that Netflix would be winding down its DVD rental service. On September 29, 2023, they will be shipping out their final discs. For the quarter ending September 2023, Netflix reported revenue of $8.54 billion and earnings per share of $3.73, surpassing analysts’ expectations.
The company also thrives financially through its partnerships with motion picture producers, writers, directors, and animation artists to acquire content that can be legally broadcasted. Additionally, it collaborates with ISPs to strengthen its global market position.
Netflix’s Growth and Subscriptions
Netflix stock has performed well, rising almost 60% year to date, with a 35% increase in the past six months. After dealing with challenges like the Hollywood writers strike, Netflix managed to add 8.8 million new subscribers in Q3 and grow profits.
Pricing Plans
Q: How much does Netflix cost?
A: Netflix offers the following streaming plans:
- Standard with Ads: $6.99 per month
- Standard: $9.99 per month
- Premium: $19.99 per month
The cost for adding another user to a subscription plan is $7.99 per month.
Revenue Sources
Netflix’s main source of revenue is its subscription models, with prices ranging from $7.99 to $13.99 per month. This amounts to approximately $950 million per month. Additionally, Netflix earns about $30 million per month through its DVD rental service. The monthly net income is about $43 million.