Netflix announced on Tuesday that, in spite of price increases at the top streaming service, the business attracted 13 million new members in the last three months of 2018. With a little over 260 million members globally at the end of 2023, Netflix made $938 million in profits in the last quarter of 2023 compared to just $55 million in the same period the previous year.
“As streaming grows, we think there is a lot of room for growth ahead,” the US business stated in an earnings letter. After the release of the earnings results, Netflix shares rose more than 8% to $532.75 in after-market trading.
“Netflix stands out as the undisputed leader in the streaming wars,” stated Ross Benes, principal analyst at Insider Intelligence. The firm has a “big, bold” schedule of content for distribution this year, the streaming pioneer claimed, despite the strikes by Hollywood actors and writers last year.
The corporation promoted upcoming material that included a brand-new television series called “3 Body Problem,” which is based on the best-selling book of the same name, and a sequel to the popular Squid Game series from South Korea.
Netflix stated in the letter that “choice and control are the price of entry in modern entertainment, and that is streaming.” “We think it’s the best way for our industry to stay relevant and grow because it’s what consumers want.”
As it moves deeper into sports events, Netflix announced its earnings the same day it signed a long-term broadcast agreement with the WWE professional wrestling giant.
“Raw,” the WWE’s flagship show that has been shown since 1993, will exclusively go to Netflix starting in the United States in 2025.
As soon as the rights become available, the partnership will also allow WWE shows and live events to be streamed globally. Netflix has the option to either opt out after the first five years or extend the arrangement for an additional ten years, with an initial term of five billion dollars.
“Extremely competitive” – Netflix stated, “We expect our industry to remain highly competitive,” citing significant investments made by competitors like as Apple, Amazon, and YouTube.
“That’s why it’s crucial that we keep enhancing our entertainment lineup.” Late last year, Netflix raised the monthly cost of its basic plan to $11.99 in the US and its premium plan to $22.99 in France. Price rises of a similar nature were also observed in Britain.
Early in 2022, the Silicon Valley behemoth intensified its assault on individuals who shared their passwords with anyone outside of their immediate family following a time of difficult financial results.
About the same time as the crackdown, Netflix introduced an ad-subsidized service in an attempt to generate additional cash.
According to Netflix, the $7 monthly ad-supported tier is expanding quickly but hasn’t yet taken over as the primary source of income.
Netflix
The firm announced on Tuesday that it would phase out its most affordable ad-free plan, beginning in the second quarter of this year with Canada and the UK, as the ad-tiers gain traction.
As of earlier this month, the business reported that 40 percent of new sign-ups are on the ad-supported tier, with 23 million users utilizing it.
During an earnings call, Netflix co-chief executive Greg Peters stated that the firm is working to add more mobile games to its library of over 80 titles for users to enjoy. The popular game “Grand Theft Auto” was just added.
