The mystery has been cleared. Netflix seems not to have been affected by its heavy-handed policy regarding shared accounts. If there were any doubts about whether its decision to restrict them outside the home would penalise the company among Spanish households, its latest results have completely dispelled them. Although it does not provide data on the number of subscribers by country, the accounts that Netflix Servicios de Transmisión España has filed with the Mercantile Registry are eloquent: last year its income and profits grew. And at a good pace, which suggests that beyond the initial indignation, its users have not punished the change in policy.
The data is clear.
Almost 691 millionThat is the amount that Netflix Spain’s streaming services earned last year, according to the accounts it has filed with the Commercial Registry. To be more specific, 690.6 million, which represents an increase of 5.2%. And it is not the only figure that will have raised more than one smile in the company’s offices in Spain. Its profits rose even more clearly to 10.6 million, 12.7% more than the previous year.
Are there more numbers? Yes. The subsidiary reported a pre-tax profit of €14.2 million, meaning the year-on-year increase is much higher in this case, at 51%. Expansion The newspaper also clarifies that it paid 3.5 million euros in corporate tax to the Treasury, an item that experienced an increase similar to that of profits, of almost 13%. According to the newspaper, the company has used practically all of its profits, 10.6 million euros, to pay back its shareholders.
It matters how much… And it matters when, especially in this case. If a company’s balance sheet is interesting, it is not only because of its figures, the volume of revenue or profits it reflects. Just as, or even more, relevant is the context… and its interpretations.
The balance sheet filed with the Commercial Registry is the first to provide a “snapshot” of how the new policy adopted in Spain in February 2023 by Netflix affected the service, which ended the “free bar” of shared accounts between different addresses. The figures in green, with double-digit growth, reflect that this change of direction does not seem to have penalized it. They also give a clue about the greater or lesser success of the new rates, with subscriptions with ads.
A good quarter. These are not the only recent figures we have on the company at a global level. Beyond Spain, Netflix has just revealed that during the second quarter it has added eight million subscribers to reach around 277 million. In terms of cash, it earned around 9.56 billion dollars with an operating profit of 2.6 billion, both above 2023.
Changes are coming. There is more news. In its letter to shareholders, Netflix has also hinted at its plans to implement changes to its service. The firm is already working on the design of a new home page, its “biggest update in a decade,” in the words of the platform itself. While waiting to learn more details or for the changes to reach users, Netflix wanted to test the waters by outlining the ideas it has in mind.
“This new interface offers information about the most visible titles at a glance, including synopsis, genre and ratings,” Netflix details in a document to which it has had access. Hollywood Reporter“Title previews are also larger and more dynamic, with more immersive trailers and larger box art.”
Simplifying design… and “My Netflix”Along the same lines, the company says it wanted to “simplify” the navigation bar, which it has moved to the top to “create quicker and easier shortcuts.” “This new design includes My Netflix, which has everything that members have saved or watched and was previously only available on mobile devices,” the company adds.
Image | Mollie Sivaram (Unsplash) and Venti Views (Unsplash)
At WorldOfSoftware | Netflix is doubling down on its bet against shared accounts for a simple reason: it has done very well