After a tricky year for Netflix, the streaming service now expects to double their profits during the next quarter after gaining 5million new subscribers over the summer. 

With the introduction of adverts, a price increase on their basic plan and a crackdown on password sharing, the company announced that they had succeeded in upscaling their business model. After the recent release of shows such as Emily in Paris and The Perfect Couple, drawing in independent directors such as Susanne Bier and opening up their audience even further, the platform has seen a significant increase in subscribers, which they hope will continue to rise with the upcoming season of Squid Game towards the end of this year. 

Netflix’s number of subscribers grew to a record 282.7million in the three months leading up to September, with an overall increase of 5.1million subscribers during that period. Their total revenue increased by 15 per cent to $9.83billion, with their net income increasing by 41 per cent. 

In a letter to shareholders, Netflix stated: “We’ve delivered on our plan to reaccelerate our business. As we look ahead to 2025, we’re focused on improving every aspect of our service and continuing to deliver healthy revenue and profit growth.” 

Netflix remains the leading figure of the digital streaming era, with many other platforms such as Disney+, Amazon’s Prime Video and Hulu following in their footsteps. Furthermore, the business model has evolved and been adopted by companies such as Mubi and Criterion, steering away from commercial cinema with a focus on independent projects.

During the pandemic, Netflix saw a huge increase in subscribers as people turned to digital entertainment as they stayed inside their homes, but as the lockdown restrictions were lifted the company struggled to return to their previous profit levels as people ventured back to the cinema.

In order to diversify its business model, the platform began investing in a wider range of projects, working with established directors such as Martin Scorsese on The Irishman and Alfonso Cuarón on Roma, as well as emerging directors.

As well as this, they secured deals to live-broadcast popular sporting events, with the platform streaming two NFL games on Christmas Day and creating a deal with World Wrestling Entertainment. They recently announced that they will also be streaming the fight between YouTuber Jake Paul and boxer Mike Tyson, taking place next month.

In addition to bringing in new viewers, Netflix have turned a focus towards their existing viewers, investing in high-budget projects such as the recently announced Russo Brothers sci-fi thriller, The Electric State, with a reported budget of $320 million. Chris Pratt and Millie Bobby Brown will star in this project, with it set to release in 2025.

Specific details of the plot are being kept under wraps, but it is said to be about an orphaned teenager travelling across America with a robot and older man, in search of her brother. Netflix ensured their investors that returning viewers were at a healthy level and they’re satisfied with the engagement from new and older subscribers.