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Netflix breaks records with 13.1 Million subscribers in Q4 2023, surpassing projections

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Netflix has set a new subscription record, boasting 13.1 million subscribers in the fourth quarter of 2023. This figure exceeds the projected gains of 8.97 million, making it the largest-ever fourth-quarter subscriber growth for the company. The total number of Netflix subscribers now stands at an impressive 260 million.

The surge in subscribers can be attributed to the success of the streaming platform’s strong lineup of shows, including the final season of the long-running royal drama “The Crown” and David Fincher’s original film, “The Killer.”

Following this announcement, Netflix shares experienced an 8.3% surge in after-hours trading, contributing to a 65% gain in stock value throughout 2023. Analysts are recognizing Netflix as the victor in the ongoing ‘streaming wars.’

Bank of America media analyst Jessica Reif Ehrlich stated, “It is becoming increasingly clear that Netflix has won the ‘streaming wars.’”

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While Netflix reported per-share earnings of $2.11, slightly below consensus estimates of $2.22 per share, the company attributed this to a $239 million noncash loss related to currency exchange rates. However, the revenue exceeded forecasts, reaching $8.8 billion compared to the projected $8.7 billion for the quarter.

Looking ahead, Netflix anticipates healthy double-digit revenue growth for the full year of 2024, driven by continuous subscriber additions and investments in its advertising business. Although advertising is not currently a primary revenue driver, the company aims to change this by 2025.

Netflix credited its success to a robust portfolio of intellectual property, including the reality show “Squid Game: The Challenge,” original series like “All the Light We Cannot See,” feature films such as Zack Snyder’s “Rebel Moon: A Child of Fire,” and non-English-language programming, including the third season of the popular French series “Lupin.”

Ted Sarandos, Co-CEO of Netflix, highlighted the company’s history of breaking major hits in television and expressed excitement about studios being more open to licensing again. Sarandos stated, “I am thrilled that the studios are more open to licensing again, and I’m thrilled to tell them that we are open for business.”

Additionally, Netflix sees growth opportunities in new areas like advertising and games. Despite the games business being in its early stages, the company reported a tripling of engagement. Chief Financial Officer Spencer Neumann revealed plans to increase content spending, anticipating an investment of up to $17 billion in 2024, emphasizing a strategic and responsible approach to content creation.

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