Netflix revenues hit record high amid BBC licence fee exodus

Telegraph

9 hours ago

Netflix's sales in the UK hit a record high after the streaming giant tightened its grip on Britain amid an exodus of BBC licence payers.
The US company posted UK revenues of almost £1.85bn in 2024 – up 11pc on the previous year and a new record high. Pre-tax profits edged up to £63m.
Bosses said the increase had been driven by a rise in subscriber numbers as viewers continued to flock to the service.
While the company no longer discloses this figure, recent numbers from Ofcom showed 17.4m UK households – or 59pc – pay for a Netflix account.
That makes it the most-subscribed service in the UK, accounting for nearly half of all streaming views last year.
Netflix's dominance and the success of hard-hitting dramas such as Adolescence – the four-part series that sparked a national conversation about young people – poses a direct threat to the BBC, which has for decades been the strongest force in UK television.
While the BBC remains the most-watched service, accounting for 19pc of all viewing time, a further 300,000 households stopped paying the licence fee last year.
Overall viewing of BBC videos rose slightly last year as increased demand for iPlayer offset a decline in its traditional broadcast service.
However, the BBC is scrambling to reverse a decline in viewership among younger audiences, who are increasingly shunning the public service broadcaster in favour of streaming rivals.
Netflix's hits last year included Baby Reindeer, the controversial drama by comedian Richard Gadd about his stalker, which won six Emmy awards. Black Doves, One Day, The Gentlemen and Fool Me Once were among other original shows that pulled in large audiences.
Netflix is widely considered to have emerged as the victor in the streaming wars and has cemented itself in British households. It has succeeded in weathering the cost of living crisis by launching a cheaper subscription tier with advertising, which has proved popular among price-conscious viewers.
The platform was also the second most-watched service among both children and young adults last year, behind YouTube. For young adults aged between 16 and 34, Netflix is the most popular first destination after switching on the TV.
The company has also benefitted from a crackdown on password-sharing, as well as recent price rises.
The success of Netflix has sparked calls from MPs for a tax on streaming giants amid concerns that a funding crisis among traditional broadcasters could threaten the future of high-quality British dramas.
Boosting British presence
Netflix has been investing heavily in British productions, with Adolescence the most-watched show so far this year and the first streaming programming to top the weekly TV ratings.
The latest accounts for Netflix Services UK suggest the US giant is now boosting its presence in Britain.
The company's costs jumped by a fifth to more than £100m last year, driven by a rise in its wage bill as it expanded. The number of employees rose by almost 20pc to 263.
Netflix UK paid a £50m dividend back to its US parent company in 2024, in line with the previous year.
Separate accounts for Netflix's UK studios business, which oversees productions in Britain, showed revenues rose by almost 50pc to £236m, which bosses said was because of a change in the terms of its inter-company service agreement.
Profits at the production division were up 16pc to £171m. Costs rose as the company splashed out on leases for new studio space.
A Netflix spokesman said: 'Netflix is a significant contributor to the UK economy – investing $6bn over the last four years and working with over 50,000 cast and crew and 200+ producers to produce British content such as Adolescence, Baby Reindeer and Black Doves that is loved the world over.
'We're committed for the long term and invest more here than any other country except the US.'