The cute update is back on Netflix. The American streaming platform gained more than thirteen million subscribers during the fourth quarter of 2023, including nearly three million in the North American market, and now has more than 260 million customers worldwide.
The video-on-demand veteran, which gained nearly nine million subscribers during the summer, achieved 8.8 billion dollars (approx. 8.1 billion euros) in turnover during the holiday season (+12.5% in one year), according to data published on Tuesday, January 23. Press release of results, outperforming analysts’ forecasts. And it has big ambitions for the current quarter, betting on 13% growth, or more than $9 billion in revenue and nearly $2 billion in net profit. Additionally, its stock rose more than 8% during electronic trading after the close on the New York Stock Exchange.
“We think there’s a lot of room for growth with the expansion of streaming.”The two bosses, Ted Sarandos and Greg Peters, were quoted as saying in the press release. “If we continue to improve Netflix faster than the competition, we will have a company that will always be more valuable to consumers, creators and shareholders.”.
They also congratulated themselves for launching a cheap subscription formula with ads that had to be generated “Long Term Profit”. “We’re at 23 million active monthly users” Of this formula, welcomed the company’s co-general manager Greg Peters during the conference call. In November 2023, Netflix announced fifteen million.
For the period from October to December 2023, the California group’s net profit came in at $938 million, slightly below expectations, instead of $990 million, but significantly higher than the $55 million for the same period a year earlier.
New material after the end of the Hollywood strike
Netflix began its decline in 2022 when the company saw a first-quarter drop in subscribers for the first time in ten years. The pioneer of online video services then raised the bar, especially thanks to its strict policy regarding sharing passwords between users.
At the end of 2023, like the final season of the series Sex education Or Mught Attracted viewers, viz Berlin, A derivative of the hit series paper house, Or Squid Game: The ChallengeA reality TV show inspired by the South Korean phenomenon series Squid game ; The latter also returns to the platform with a second season in 2024 Bridgerton And Emily in Paris.
“Despite the strike last year which delayed the launch of some titles, we have a significant and bold program for 2024”, Netflix guaranteed. Like its competitors, it may resume production of new material in the United States after the end of the historic strike in Hollywood in November 2023.
The industry was paralyzed for six months due to the dual social movement of screenwriters and actors. They demanded pay hikes and security, especially with regard to artificial intelligence. However, the major streaming services assured that the impact of this strike will be limited for them, especially since it incidentally allows them to save money.
Wrestling comes on stage
While Disney+ is still figuring out how to achieve profitability, Netflix’s operating margin came in at 20.6% for its full 2023 fiscal year, higher than its forecast. And the Los Gatos (California) company sees it improving significantly again in 2024.
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Enough to allow Netflix to further expand into other entertainment areas already occupied by its competitors, such as sports. The group announced Tuesday morning that it has signed a ten-year broadcast deal with American professional wrestling league WWE for $5 billion. From 2025 in the United States, it wins the distinction of Aam the rawWWE’s flagship show that had the best audience on American cable last year.
“It is the heart of our vision for the sport, which is focused on dramaNetflix co-chief executive officer Ted Sarandos said. This represents fifty-two weeks of live programming each year and is part of our ambitions for more live. »
This is a big step for the platform which has so far lagged behind in the race for broadcasting rights of sports events. Amazon has recently launched in this market, while Disney – through its subsidiary ESPN -, Warner Bros. Discovery and its Max platform, or Peacock, a branch of the NBCUniversal group, already controls a significant portfolio of rights that enable them to add competitions to their streaming. offering
