Netflix Users Average Two Hours Daily on Platform

According to Netflix’s recently released third-quarter earnings report, subscribers are spending an average of two hours per day on the platform, and household viewership has increased compared to the previous year. Over the past few months, Netflix has experienced significant growth, reporting revenues of $9.83 billion and an operating income of $2.91 billion. The company also gained around 5 million additional subscribers, bringing the total to 282.7 million globally. Approximately half of those who subscribed to Netflix in the third quarter of 2024 selected the ad-supported plan.

Netflix currently accounts for just under 10 percent of total TV usage in its largest markets. The company sees a substantial opportunity to expand its market share by continuously delivering high-quality TV shows and movies. Netflix has an impressive lineup of content planned for the rest of the year and into the next, including the second season of “Squid Game,” the final season of “Arcane,” and an animated “Witcher” movie.

In its letter to investors, Netflix acknowledged the challenge of programming for a large and engaged audience with diverse and high-quality content. The letter noted that streaming services without the breadth of Netflix’s content are increasingly opting to bundle their offerings. Netflix describes itself as an exceptional package of series, films—both licensed and original—as well as games and live events.

During an earnings call on Thursday, Netflix co-CEO Greg Peters confirmed that the company plans to implement the redesign it began testing over the summer. Peters expressed enthusiasm about the progress and stated that they are finalizing the changes to roll out to subscribers globally.

This earnings report may be one of the last times Netflix discloses quarterly subscriber additions, as the company plans to cease quarterly counts starting in 2025. As streaming services diversify their revenue streams through advertising and paid sharing, subscriber growth is becoming a less critical metric. Despite this shift, Netflix does not anticipate that ads will become a primary revenue growth driver next year, citing a pace of scale that exceeds their capacity to monetize the expanding ad inventory.

Additionally, information from Netflix’s earnings call has been updated as of October 17th.

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