Netflix has unveiled a stunning surge in subscriber growth, marking its best holiday season performance ever, as the streaming giant wraps up a year of remarkable recovery. The final quarter of 2023 saw the company register its third consecutive quarter of accelerating growth, a feat achieved amidst a crackdown on shared accounts and strategic price increases.
The fourth-quarter results, released Tuesday, reveal that Netflix has crafted a winning strategy, successfully attracting more subscribers despite upping its subscription costs.
In a bold move to bolster its value proposition, Netflix announced a $10 billion deal to bring WWE’s Raw to its platform, a significant addition to its already impressive array of offerings including Emmy-winning Beef and Oscar-nominated Maestro.
This compelling content lineup propelled Netflix to add an astonishing 13.1 million worldwide subscribers in the October-December period, far exceeding analysts’ projections from FactSet Research. The holiday period’s gains outshone the 8.8 million new subscribers in the preceding quarter, setting a new record for the company’s fourth-quarter performance.
Netflix at the End of 2023
By the close of 2023, Netflix boasted over 260 million global subscribers, marking an annual increase of nearly 30 million. This growth starkly contrasts with the modest 8.9 million subscriber increase in 2022, quelling doubts about Netflix’s momentum in the face of fierce competition.
Key to this resurgence was the introduction of a lower-priced, ad-supported streaming plan and stricter measures against non-paying account sharing. Simultaneously, Netflix judiciously managed its programming budget while hiking its premium plan prices by 10%, appeasing profit-seeking investors.
This strategy paid dividends, with Netflix reporting a net income of $937.8 million, a significant leap from the previous year’s $55.3 million. Revenue climbed 13% to $8.83 billion, surpassing analysts’ expectations, although earnings per share fell short due to a $239 million charge related to foreign debt.
Netflix’s strategic pivot has resonated positively on Wall Street, evidenced by a 65% jump in its stock price last year. This performance starkly contrasts with other media giants like Walt Disney Co. and Warner Bros. Discovery, which are still navigating the profitable waters of video streaming.
Following the release of these stellar numbers, Netflix’s stock saw an almost 7% increase in after-hours trading. #NetflixSubscriber
