Netflix UK reports 2023 revenue of $2.2 billion, up 57% in profits
Netflix has weathered the TV industry’s contraction, posting record UK revenue of £1.7 billion ($2.2 billion), according to the latest company data.
They show that Netflix Services UK, a subsidiary of Netflix Inc responsible for offering its streaming services in the United Kingdom, increased its revenue by 8%. That’s a lower jump than 2022 (where revenue was 12% higher than the year before), but still represents a record figure for the company. In 2022, revenues reached £1.5 billion.
The vast majority of that money comes from streaming revenue (£1.6 billion by 2023), while a small portion (just over £35 million) also comes from services to parent company Netflix UK and Amsterdam-based sister company Netflix International Ltd.
According to the financial report, which was filed this week with the UK business registrar Companies House, the increase in turnover is “due to a larger membership base… and an increase in turnover per paid membership.”
Last October, Netflix increased prices for British subscribers. The basic plan of £6.99 increased by £1 per month, while the premium plan rose by £2 to £17.99 per month.
Despite the price increases, the financial report states that the number of paid memberships will grow by 7% by 2023.
In addition to a glut of British content last year — including the series finale of “The Crown” and new seasons of “Sex Education” and “Bridgerton” — the increase in subscribers may well be due to Netflix’s crackdown on sharing passwords.
In total, Netflix Services UK posted an operating profit of £53.7 billion for 2023 (up from £31.6 million last year) and a profit of £46.5 million, up 57% on 2022, when it posted a profit of £26.7 million was recorded.
The total number of full-time employees at the company decreased marginally in 2023, from 220 to 202.
Yet the streamer is not resting on its laurels. According to the report, Netflix’s goal is “to accelerate revenue growth and expand our operating margin.” Having launched a stream of UK hits in 2024 – including the most-watched global show ‘Fool Me Once’, the viral hit ‘Baby Reindeer’ and Guy Ritchie’s escapade ‘The Gentlemen’ – next year’s results are likely to ensure that these goals are achieved.
Last month, Netflix chief Ted Sarandos gave a keynote speech at the prestigious Royal Television Society conference in London, reaffirming the streamer’s commitment to Britain, saying: “You have some of the very best writers, directors, producers, actors, crew, crafts and locations anywhere in the world. I have always seen Britain as the birthplace of prestige television – a creative culture unlike any other.”
Over the past four years, Netflix has invested more than £6 billion in Britain, from soundstages and skills training to development and production.
