Netflix reaffirmed its dominance over the streaming video market on Tuesday as its mix of live sporting events, popular return series and quirky moments such as Beyonce’s football half-stadium show helped attract subscribers throughout the holiday season quantity.
The company added 18.9 million subscribers in the fourth quarter, bringing its global subscriber base to nearly 302 million customers, a figure dwarfing its Hollywood streaming rival.
Netflix is trying to capitalize on its sprint popularity by raising prices in the United States, Canada, Portugal and Argentina, as it spends more time programming. In the US, the company’s advertising-supported services are priced at $7.99 per month (approximately Rs 690), which is higher than $6.99 (approximately Rs 605), while the premium package is priced at $24.99 (approximately Rs 2,163), from Rs 9.99 up 9% of existing pricing.
Investors responded enthusiastically to the results, causing Netflix’s stock to soar about 13% in the expansion trade, bringing its stock market to nearly $50 billion (about Rs 432,73 billion). Netflix’s stock has risen more than 77% over the past year, surpassing the S&P 500’s 24% gain.
“Netflix reaffirms its leadership and definitely runs away in the streaming market,” said Paolo Pescatore of PP Foresight. “It is training by adjusting prices compared to its competitors, given its stronger and diverse programming sectors,” said Paolo Pescatore of PP Foresight. muscle.”
The company said its fourth-quarter programming slate exceeded its expectations, with viewers raving in the second season of its dystopian survival thriller Squid Games, which the company said would be its most watched One of the original series.
Netflix’s deepening investment in live events has attracted tens of millions of viewers. Jake Paul and Mike Tyson attracted 65 million Creeks in November’s heavyweight boxing match. Two NFL games on Christmas Day, one of which was Beyoncé’s halftime performance, attracted an average of 30 million global audiences and ranked the highest among the most popular games in league history.
“It’s obvious that content that drives users into streaming services. Netflix’s focus on high-quality content is the reason for the overall strong year and fourth quarter,” said Mike Proulx, research director at Forrester.
Netflix says it has moved away from the influence of Covid-19 and the 2023 strike by Hollywood writers and actors and is offering a return season for its most popular shows, including the Addams Family series Wednesday, and the supernatural “Stranger” . “
It will also play more live events, including the weekly WWE “Monday Night” wrestling match. It ensures rights to the FIFA Women’s World Cup in 2027 and 2031, and the agreement illustrates its strategy to provide special event programming rather than regular season sports packages.
Such live events are attractive to advertisers because they attract viewers who watch in real time.
“We exceeded our advertising revenue targets in the fourth quarter, and we doubled our advertising revenue annually last year. We expect to double again this year,” said Greg Peters, co-CEO of Netflix.
The company says ad-supported versions of its services account for 55% of new registrations in its available countries.
Macquarie stock research analyst Tim Nollen predicts AD revenue will increase to $2 billion as more people sign up for the company’s ad support tier and Netflix’s ad tech outfit ( Rough; yrs. He wrote in an investor notes published before Netflix’s earnings report that live events will continue to drive registration.
The quarter will also mark the last increase in Netflix’s reporting subscriber additions as the company highlights other performance metrics, including revenue and profit-change analysts slow down subscriber growth.
The company reported earnings per share of $4.27 (approximately Rs 370), beating Wall Street’s forecast of $4.20 (approximately Rs 363), according to the average of 34 analysts. The company has had annual operating income of more than US$10 billion (approximately Rs 865.4 billion).
LSEG data shows it grew 16% a year ago to $10.2 billion (about Rs 88,278 crore) while Wall Street estimates the quarter’s estimate of $10.1 billion (about Rs 877,371 crore). One person familiar with the matter said that the leaper of subscribers did not generate a similar revenue surge this quarter, as registrations would occur throughout the quarter.
The company revised its guidance and expects revenue of $43.5 billion (about Rs 376.494 crore) in 2025 to $44.5 billion (about Rs 385.149 crore), an increase of Rs 5 billion and a rise of $5 billion by 2025 . The company said the latest guidance reflects improved business fundamentals.
Netflix’s board of directors also approved $15 billion (approximately Rs 129,825 crore) for the share repurchase, which raises the total amount of the total buyback authorization to $17.1 billion (approximately Rs 148,009 crore).
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