Netflix UK sales grow as it gains more and higher-paying subscribers
The British services arm of the global company, which streams popular series such as Sex Education, The Crown and Top Boy, said it has seen more members sign up to the platform as it grows in popularity.
It reported a 12 per cent increase in total revenues, from £1.38bn in 2021 to £1.54bn in 2022.
Sales, which primarily come from membership fees, rose as it saw a 4 per cent increase in the average number of paid subscribers.
Furthermore, the average monthly revenue per paying membership shot up by 14 per cent compared to the previous year, as people paid more on average for the streaming service.
“The increase in revenue is due to a larger member base, which continues to grow as Netflix becomes more popular,” the company said.
Netflix upped the price of its standard and premium subscriptions last year, to £10.99 and £15.99 per month respectively. It also introduced a standard plan with adverts for £4.99 a month.
The move to introduce advert-free subscriptions for a higher fee has been replicated by rival streaming platforms such as Disney+ and Amazon Prime this year.
Netflix UK said its pre-tax profit for 2022 was £34.1m, up from £27.9m the previous year.
It came as the average number of full-time employees increased to 202, from 153 the prior year.
The firm also saw total salaries and wages for employees jump to £41.8m from £29.2m.
Netflix said it had a surge in the number of subscribers earlier this year after cracking down on password sharing and rolling out the cheaper membership option.
It added 5.9m new subscribers between April and June and reported a slight uplift in earnings for the quarter.
But it came amid the largest industry strike action for decades as writers and actors in Hollywood protested over issues including pay and the rising threat of artificial intelligence (AI).
Last month, writers in the US agreed to call off strikes after board members came to an agreement with Hollywood studio bosses.
But union leaders representing actors remain in talks with studios, and the walkouts are expected to have a significant impact on the roll-out of TV programmes and films in cinemas and streaming services.