Netflix made strong gains across the board in Q3 2024, despite slower growth on the subscriber front.

In its latest financial statement published yesterday (October 17), the streaming giant reported quarterly revenues of US$9.8 billion—a 15% year-over-year increase. Its total number of subscribers reached 282.72 million, which is up significantly by 5.1 million from Q2, but just a little behind the gains of Q3 2023 (when it added around 8.8 million).

As previously announced, Netflix will stop reporting these quarterly subscriber counts as of Q1 2025—emphasizing other metrics (like engagement and operating margin) instead as more accurate indicators of growth for a streaming company that’s been in the business for well over a decade. 

In a letter to shareholders, Netflix noted that engagement is “healthy,” averaging roughly two hours a day per paid membership. Meanwhile, the company’s operating margin was nearly 30% in Q3, compared to 22% in the same quarter the previous year.

One notable strategic move contributing to the positive results is last month’s rollout of kids content playlists in select markets, which should help boost discoverability and keep engagement numbers growing. The streamer’s reliable stable of animation (both original and licensed) has generated consistent viewing, according to Netflix’s biannual data reports.

Kids programming highlights for Q3 included Saving Bikini Bottom: The Sandy Cheeks Movie (pictured, which racked up 12.8 million views in its debut week and topped the global top 10), along with new seasons of steady performers Gabby’s Dollhouse, Hot Wheels Let’s Race and Spin Master’s Unicorn Academy. New shows, including Rainbow’s Mermaid Magic, were also successful in the quarter. 

Looking ahead, kids-adjacent titles slated for Q4 include Skydance Animation’s fantasy pic Spellbound, Locksmith Animation’s holiday feature That Christmas and season four of live-action teen/YA series Outer Banks. 

Netflix also noted that ad membership was up by 35% this quarter. “Our ad plan allows us to offer a lower price-point to consumers, and it’s proving to be popular,” according to a statement from the company that also noted this plan accounted for more than 50% of sign-ups in countries that offer the tier. “However, we have much more work to do improving our offering for advertisers, which will be a priority over the next few years. Our in-house, first-party ad-tech platform is on track to roll out in Canada next month, with a broader launch in all [countries that offer ad tiers] in 2025.”

In related Netflix news, the streamer is developing a movie adaptation of Scholastic’s Amulet graphic novel series by Kazu Kibuishi, who is attached to the project as an EP. Jason Fuchs (Wonder Woman) will pen the script, and Shawn Levy, Dan Cohen and Dan Levine are producing under their New York-based 21 Laps banner. Netflix is also staging a Stranger Things push to build buzz for the upcoming season of its hit YA series—with new partnerships for toys (Squishmallows), jewelry (Pandora) and a 2025 range of comic books (Dark Horse).