Netflix UK’s Profit Soars by Three-Quarters

Company Reports Post-Tax Figure of £46.5m

Netflix UK’s profits have leapt by three-quarters, with the streamer registering a post-tax figure of £46.5m, according to its latest financial accounts.

The company’s profit was up 74% from 2022’s £26.7m post-tax operating profit, with pre-tax figures rising 70% from £31.6m to £53.7m.

Netflix’s profit was able to weather its tax bill, which almost doubled from the £7.5m paid in 2022 to the £14.2m shelled out in 2023.

Revenue Increases by 8%

In a Companies House filing from its main UK entity, Netflix Services UK, the SVoD major reported an 8% revenue increase in 2023, reaching £1.7bn compared with £1.5bn in 2022.

The increase was attributed to a “larger member base”, with the average number of paid memberships and increase in average monthly revenue per paying member (ARPU) growing by 7%.

Successful UK Releases

In 2023, Netflix launched UK series including tentpole documentary Beckham, which was seventh in its What We Watched viewership report for the second half of the year totalling 43.9m views, and Sex Education S4, which was just above Beckham with 46.3m views.

Other notable releases included the final series of The Crown and high-concept sci-fi crime series Bodies.

2024 Successes

The streamer’s UK business has had a stand-out year in 2024, with locally commissioned and UK-filmed titles Fool Me Once, Baby Reindeer, The Gentlemen and Bridgerton dominating Netflix’s most-watched shows in 2024.

More than a quarter of the streamer’s top 20 shows were commissioned out of the UK, with dramas One Day and Eric and true crime documentary American Nightmare all making the cut.

Fellow UK tentpole Supacell also had a successful launch and was recommissioned for a second series. However, Netflix received online backlash for cancelling high-profile Greek mythology-themed UK series Kaos yesterday (October 9).

Praising the UK’s creativity at RTS London last month, co-chief Ted Sarandos said: “When you make something authentic that appeals to certain people in certain places it tends to appeal to a lot of people in a lot of places.”

Conclusion

Netflix UK’s success is a testament to the company’s ability to produce high-quality content that resonates with audiences. The streamer’s commitment to investing in UK-based productions has paid off, with many of its UK-made shows receiving critical acclaim and commercial success.

FAQs

* What was Netflix UK’s post-tax profit in 2023?
* £46.5m
* What was the increase in Netflix’s revenue in 2023?
* 8%
* What was the reason for the increase in Netflix’s revenue?
* A “larger member base” and growth in average monthly revenue per paying member (ARPU)
* What were some of the notable UK releases on Netflix in 2023?
* Documentary Beckham, Sex Education S4, The Crown series finale, and Bodies