Netflix Services U.K. (a subsidiary of Netflix Inc) grew revenue by 8% year-on-year in 2023, according to a financial report filed this week at the U.K. business registrar Companies House. This is, of course, lower revenue growth than in 2022, which was up 12% on 2021. Nevertheless, this growth is still a record for Netflix. The value of Netflix's U.K. revenues in 2022 was £1.5 billion. A very large proportion of this, £1.6 billion, comes from streaming revenue, of course, while £35 million of revenue comes from services provided to parent company Netflix INC and Amsterdam-based Netflix International B.V..
Netflix's higher revenue in the UK was driven by a significant increase in the number of regular subscribers paying regularly for their chosen packages (up as much as 7% in 2022). The company's higher revenue was also impacted by Netflix's package price increases in October 2023 (the £6.99 basic package increased by £1 per month, while the premium package increased by £2 to £17.99 per month).

Of course, aspects that impacted revenue and subscriber growth also were the global ban on shared accounts on Netflix and the huge interest and surge in new users for the next seasons of popular series premiering in 2023 (including 'Bridgerton', 'Sex Education' and 'The Crown').

Overall, Netflix Services UK generated an operating profit of £53.7 million in 2023 (up from £31.6 million in 2022), and a profit of £46.5 million, up 57% on the 2022 profit of £26.7 million. The number of full-time employees at Netflix in the UK fell slightly in 2023, from 220 FTEs to 202 FTEs.

Netflix Services UK's primary objective, according to its financial statements, is to accelerate revenue growth and increase operating margins. The likelihood of achieving these targets is high, given the launch in 2024 of further titles on the UK Netflix platform that are hugely popular with viewers (these include The 'Gentlemen', 'Baby Reindeer' and the global hit 'Fool Me Once’).

Speaking at the opening of the prestigious Royal Television Society conference in London, Netflix CEO Ted Sarandos highlighted the company's commitment to the UK. His keynote speech also honored the role of British writers, actors, directors, producers and film crews who are great professionals, making fantastic film and television productions and creating a creative culture for global audiences. Netflix's investment in the UK in film studios and professional training has totaled more than £6 billion over the past four years.

The next few months will tell us whether the UK's Netflix will be able to hit its targets and deliver more record revenues and profits next year.

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