📈Chartpack: Product Monetization Models Part 3
How product-led companies like Netflix, Docusign and Tinder are making money
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Hi product people 👋,
Welcome back to this series of Chartpacks where we explore how product led companies are making money. 2023 was the year companies focused relentlessly on profitability and this trend shows no signs of slowing in 2024. We started this series to give you an insight into some of the ways modern companies are generating revenues so that you can potentially apply some of the lessons and strategies in your own product, too.
If you missed the previous deep dives into the monetization strategies of companies like Discord, Amazon and Duolingo, you can find part 1 and part 2 here:
In part 3, we’ll continue by digging into a brand new batch of companies, including Netflix, Docusign and Tinder.
We’ll explore how they’re making money today, how they might make money in the future - and most importantly, what lessons and principles you can take away for your own product’s monetization strategy.
Coming up:
How Netflix is quietly building a new revenue stream that most people aren’t paying attention to
How Docusign monetizes its API with lessons for your own product’s API monetization strategy
Why a powerful patent few people know about helps Tinder drive revenues
Netflix
Since 2022, Netflix’s revenues have increased steadily from $7.8 billion in Q4 2022 to $8.8 billion in the most recent quarter, with estimates that this will surpass $9 billion in the next year.
Most of the company's revenue comes from paid subscriptions - or memberships as Netflix calls them. And last year there were fears that the introduction of a clamp down on password sharing might lead to mass cancellations of subscriptions, but those fears never materialised.
Netflix recently reported strong earnings which saw it raise its prices, add new monetization strategies, clamp down on password sharing and gain millions of new subscribers at the same time. In its earnings letter to shareholders the company explicitly called out the 3 core ways it monetizes its product in 2024: