Netflix's U.K. Arm Posts Record Annual Profits Amid Ad-Tier Growth

Netflix's UK arm reported record annual profits of £63m, up from £60.6m in 2023, and revenues of £1.84bn, up from £1.66bn. The increase was driven by an 11% surge in paid memberships, with over 55% of new sign-ups coming from its advertising tier. The company also distributed an interim dividend of £50m to its US parent and loaned £375m to Netflix Inc. The growth contradicts previous studies on UK viewership, which found that Brits are spending £5bn a year to avoid ads on streaming services.

Netflix's UK arm has reported record annual profits and revenue growth in 2024, according to its latest financial accounts. The streaming giant's UK division, Netflix Services UK, reported pre-tax profits of £63m, up from £60.6m in 2023, and revenues of £1.84bn, up from £1.66bn [1].

The increase in revenue was driven by an 11% surge in paid memberships, with over 55% of new sign-ups coming from its advertising tier. This growth contradicts previous studies that found Brits are spending £5bn a year to avoid ads on streaming services [2].

Additionally, Netflix Services UK distributed an interim dividend of £50m to its US parent and loaned £375m to Netflix Inc. The average number of employees at the UK business increased from 220 to 263 during 2024 [1].

Netflix UK's growth is also reflected in its content production, with several UK-originated shows and films gaining significant viewership. The company is committed to investing in the UK creative industry and developing emerging talent [3].

References:
1. [1] https://variety.com/2025/tv/news/netflix-uk-revenue-surges-2-billion-profits-grow-1236482444/
2. [2] https://www.business-live.co.uk/retail-consumer/netflix-uks-profits-soar-brits-32225293
3. [3] https://www.screendaily.com/news/netflix-uk-revenues-hit-18bn-but-profit-growth-slows/5207702.article