Netflix added 13.1 million global subscribers in Q4 ’23, its best fourth quarter ever. As we discuss, the company is capitalizing on the introduction of paid sharing and a lower priced ad-supported tier. Paid sharing, which requires those who were using someone else’s login credentials to start their own subscription, has been especially effective. Netflix designed a smart strategy to eliminate this long-valued benefit. It could have become a PR nightmare, but instead has rolled out seamlessly.

Netflix said that the ad-supported tier now accounts for an impressive 40% of new subscriptions in markets where it is available. In yet another move to optimize revenue, Netflix is discontinuing its $11.99 per month Basic plan, which will drive more new subscribers to the ad tier or the least expensive ad-free tier which is $15.49 per month.

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