Netflix reported a huge gain in subscribers, up by 13.1 million. This is a marked improvement over the early 2023 numbers, where Netflix was struggling to retain its user base to fund more original productions.
Many tech and financial companies have received poor end of year reports. Companies like Citi and Ebay are cutting large swaths of their workforce, but Netflix’s numbers show that some companies in the industry are exempt. CNBC reports:
Shares of Netflix jumped in extended trading Tuesday after the company reported adding 13.1 million subscribers during the fourth quarter, stronger growth than Wall Street expected as the streamer builds its ad-supported service and cracks down on password sharing.
Netflix now has 260.8 million paid subscribers, a new record for the service.
Netflix implemented two major changes to boost its revenue. First, it cracked down on password sharing between unrelated people. Second, it created a cheap ad-supported tier and raised prices on all others. Yahoo Finance takes a closer look at Netflix’s revenue:
Revenue beat Wall Street estimates of $8.71 billion to hit $8.83 billion in the quarter, an increase of 12.5% compared to the same period last year, as the streamer leaned on revenue initiatives like its crackdown on password sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.
Netflix guided to first quarter revenue of $9.24 billion, roughly on par with consensus expectations of $9.28 billion.
Netflix remains one of the most expensive streaming services, though is also one of the most well known and appreciated ones. Its wide variety of content often makes it the one service a family would subscribe to. Other services, like Hulu, Disney, Max, or Apple TV+, tend to cater to a specific audience which makes a wide appeal more difficult.
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