Netflix Posts Record U.K. Revenues of $2.2 Billion for 2023, Amounting to 57% Profit Increase

Netflix has bucked the TV industry contraction to post record U.K. revenues of £1.7 billion ($2.2 billion) according to its latest company accounts.

They show that Netflix Services U.K., a Netflix Inc subsidiary responsible for providing its streaming service within the U.K., increased its revenues by 8%. That’s a lower jump than in 2022 (where revenues where 12% higher than the previous year) but still represents a record figure for the company. In 2022 revenues amounted to £1.5 billion.

The vast proportion of that money is made up from streaming revenue (£1.6 billion in 2023) with a trickle (just over £35 million) also coming from services rendered to parent company Netflix U.K. and its Amsterdam-based sister company Netflix International B.V.

According to the financial report, which was filed this week at the U.K. business registrar Companies House, the revenue increase is “due to a larger member base… and increase in revenue per paying membership.”

Last October Netflix hiked prices for U.K. subscribers. The basic plan costing £6.99 rose by £1 a month while the premium plan rose by £2 to £17.99 a month.

Despite the price increases, the financial report states that the number of paid memberships grew by 7% in 2023.

As well as a glut of U.K. content last year – including the series finale of “The Crown” as well as new seasons of “Sex Education” and “Bridgerton” – the subscriber increase may well be down to Netflix’s crackdown on password sharing.

Overall, Netflix Services U.K. posted an operating profit of £53.7 billion for 2023 (up from £31.6 million the previous year) and profits of £46.5 million, a 57% jump from 2022, which saw profits of £26.7 million.

The total number of full-time employees at the company dropped marginally in 2023, from 220 to 202.

Still, the streamer isn’t 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 U.K. hits in 2024 – including most-watched global show “Fool Me Once,” viral hit “Baby Reindeer” and Guy Ritchie escapade “The Gentlemen” – next year’s results will likely see it achieve those goals.

Last month Netflix chief Ted Sarandos gave a key note speech at London’s prestigious Royal Television Society conference, in which he cemented the streamer’s commitment to the U.K., saying: “You have some of the very best writers, directors, producers, actors, crew, crafts and locations anywhere in the world. I have always thought of the U.K. 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 the U.K., from soundstages and skills training to development and production.