Following a period of setbacks, Netflix has regained its footing in the online streaming TV market and has successfully attracted a larger subscriber base. Although the company’s profits fell slightly below analysts’ expectations, it has managed to create a positive momentum in 2024.
Netflix started the year with a bang by announcing that over 13 million new subscribers would join during the festive period, bringing the total number of accounts on the platform to over 260 million.
In the fourth quarter of 2023, Netflix reported sales of $8.8 billion, a 12.5 percent increase compared to the previous year. This resulted in a net profit of $938 million, which far surpassed the $55 million profit from the previous year, Reuters reported.
For the current quarter, the platform aims to achieve a 13 percent growth rate with revenues exceeding $9 billion. Additionally, it anticipates net profits of over $2 billion.
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During a conference call, Netflix’s co-CEO Greg Peters revealed that the platform had 23 million active users per month. In November, Netflix had announced 15 million new subscribers.
Share price surge
The positive news surrounding Netflix led to an over 8 percent surge in the company’s share price during electronic trading after the close of the New York Stock Exchange.
The platform’s impressive growth, which had already attracted 9 million subscribers the previous summer, can be attributed to the implementation of strict measures against password sharing. Furthermore, the introduction of a more affordable subscription tier featuring ads during broadcasts contributed to its success.
Live sports streaming investment
Netflix has also made a significant investment in live sports streaming, which is expected to attract more users to the platform.
Recently, the company announced a 10-year broadcasting agreement with the American Wrestling Association, valued at $5 billion.
Last November, the United States experienced a six-month halt in film and series production due to a wide strike initiated by numerous screenwriters and actors.
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