Netflix has experienced robust subscriber growth, adding 13.1 million subscribers in the fourth quarter, marking its strongest final quarter for net additions.
This impressive growth is attributed to the company’s successful crackdown on password sharing, with paid sharing now becoming the norm.
The company’s total subscriber count reached 260.28 million at the end of the year, a nearly 13% increase from the previous year, leading to an 8% rise in shares during after-market trading.
Live events
Netflix is diversifying its content offerings, with a particular focus on live events, sports-related content, games, and expanding its advertising business.
This shift toward livestreaming provides an opportunity for more regular, appointment-based viewing, appealing to both advertisers and subscribers, as the platform aims to replace traditional TV networks as the primary source of entertainment for households.
Netflix will invest up to $17 billion in content this year.
However, the company’s net profit for the final quarter of 2023 was slightly below expectations, standing at $938 million compared to the forecasted $956 million.
Nevertheless, the operating margin rose significantly to 16.9% from 7% a year earlier, surpassing the projected 13.3%.
WWE Raw
Netflix announced a 10-year deal valued at over $5 billion to become the new home of the hit wrestling show “WWE Raw” and other WWE shows, effective January 2025.
This deal grants Netflix exclusive rights to the show in the U.S. and international distribution rights in various regions, including Canada, Latin America, and the U.K. Netflix may expand its territorial rights as existing agreements expire.
Netflix’s foray into livestreaming aligns with its growing focus on sports entertainment, although it does not signal a shift toward high-profile, costly sports-rights packages. Additionally, the company recently announced “Dinner Time with David Chang,” a live cooking show, further diversifying its content offerings.
