According to Netflix, Europe, the Middle East, Africa (EMEA) and Asia-Pacific will lead growth in the fourth quarter of 2023 and the full year of 2023. EMEA was the region that added the most new paying subscribers, with 5.05 million in the final three months of the year and 12.08 million for the year. Asia-Pacific added 2.9 million and 7.32 million new users in the same period, respectively. Netflix now has more than 45 million paying subscribers there.

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By the end of 2023, Netflix reached a record high of 260.28 million paid subscribers. (Photo: Reuters)

Netflix's home markets — the U.S. and Canada — added 2.81 million paid subscribers and Latin America added 2.35 million paid subscribers in the fourth quarter of 2023.

Netflix said its better-than-expected paid subscriber growth was driven by the launch of cheaper ad-supported plans and efforts to eliminate account sharing. Fourth-quarter revenue rose 12.5% ​​to $8.83 billion from a year earlier, led by continued strength in the EMEA and Asia-Pacific regions.

In 2024, the streaming giant will focus on improving profitability and forecast a first-quarter profit margin of 26.2%, much higher than the previous quarter's 16.9%.

In its shareholder filing, Netflix also said that expanding its advertising business is an opportunity for the company to tap into new revenue and profit sources in the medium to long term. The platform’s paid subscribers grew nearly 70% in the final quarter of 2023 compared to the previous quarter thanks to changes in the service and the gradual elimination of the ad-free Basic plan ($11.99/month) for new and returning members. Netflix plans to “retire” the Basic plan in some markets, starting in Canada and the UK in the second quarter.

So, in these two countries, Netflix's cheapest ad-free plan will be $15.49/month. If you don't want to subscribe to this plan, you can choose the ad-free plan for $6.99/month or the Premium plan for $22.99/month.

Netflix has added new features over the years, like 4K video and gaming, but the upgrades won’t be free forever. “As we invest in and improve Netflix, we’ll ask our members to pay a little more to reflect those improvements,” Netflix officials said. In fact, the company raised the prices of its Basic and Premium plans last year.

(According to The Verge, Nikkei)