The news: Netflix reported record revenues in Q2, maintaining its position as the dominant subscription video-on-demand service. While the company no longer reports subscriber numbers, its low churn and ad-supported tier are driving revenue growth as the company looks to expand into other sectors like retail and more sports content.
- Revenues: $11.1 billion
- Earnings per Share: $7.35
- Q3 outlook: Revenues of $11.5 billion and $6.70 EPS
No subs, no problem: Netflix’s shifting of the focus away from net subscriber growth forces onlookers to judge the company based on margins, revenues, and monetization efficiency.
Following a surge in signups from its password-sharing crackdown (41 million net adds in 2024, including 19 million in Q4), growth has now tapered. Most of Netflix’s recent subscriber growth came from people who finally started paying after the password crackdown, meaning the easiest gains are likely behind them, notes Antenna; today, Netflix is working harder to retain users than acquire new ones.
Not the screen time champ: Netflix remains the most-used subscription video service in the US, accounting for 69% of connected TV users, per LG Ad Solutions. But it still isn’t the leader in time spent.
Netflix’s total share of TV time (7.5%) now lags behind YouTube (12.4%) and Disney (10.7%), per Nielsen. YouTube’s rise, especially among Gen Z, signals a generational shift. Crockett warns that Netflix risks falling behind in the broader “time spent” competition, even if it dominates SVOD.