What drove Netflix's revenue cost increase in Q3 2024?

Netflix's revenue and cost increases in Q3 2024 can be attributed to several key factors:

1. Content Production and Acquisition: Netflix continues to invest heavily in producing and acquiring new content, including live-action adaptations of popular franchises like Scooby-Doo and the addition of HDR10+ streaming. These efforts likely led to higher content costs.
2. Revenue Growth: The company's revenue grew by 0.16% year-over-year, reaching $8.54 billion. This increase in revenue can be a result of successful content releases and marketing strategies that attract new subscribers and retain existing ones.
3. Subscriber Base Expansion: Netflix added 18.91 million subscribers in Q4 2023, ending 2024 with 301.63 million subscribers worldwide. The growth in the subscriber base contributes to higher revenue as each subscriber contributes to the revenue pool.
4. Cost Management: Despite the revenue growth, the cost of sales increased by 0.06%. This suggests that Netflix is managing its costs effectively as it scales up its operations.

In conclusion, Netflix's revenue and cost increases in Q3 2024 are primarily driven by its ongoing investments in content creation and acquisition, coupled with successful subscriber growth strategies.