Netflix has reported its largest
fourth-quarter subscriber growth ever, surpassing even the most optimistic
projections. The streaming giant added a whopping 13.1 million subscribers in
the December quarter, well above the estimated 8.97 million, bringing its total
subscriber count to a staggering 260 million.
Following this impressive announcement,
Netflix's shares surged more than 5% in after-hours trading, reaching $518.98.
The stock had already experienced significant gains throughout 2023,
accumulating a remarkable 65% increase.
While the reported per-share earnings of
$2.11 fell slightly short of consensus estimates of $2.22 per share, Netflix
attributed this to a $239 million noncash loss related to currency exchange
rates. Despite this, the company's revenue soared to $8.8 billion, exceeding
both forecasts and Netflix's own guidance of $8.7 billion for the quarter.
Looking ahead, Netflix is optimistic
about its performance in 2024, anticipating healthy double-digit revenue
growth. The streaming giant plans to achieve this by continually expanding its
subscriber base and investing in its advertising business. Although advertising
currently does not serve as a primary driver of revenue growth, Netflix aims to
change this narrative by 2025.
Netflix attributes its outstanding
subscriber growth to the strength of its intellectual property, including
innovative shows like "Squid Game: The Challenge," a reality series
based on its most-watched TV show. The company also touted the success of new
original series such as "All the Light We Cannot See," feature films
like Zack Snyder's "Rebel Moon: A Child of Fire," and non-English-language
programming, including the third season of the French hit series "Lupin.”
As Netflix continues to captivate
audiences with its diverse content offerings, the streaming giant remains a
force to be reckoned with in the entertainment industry.
By:
Nana Appiah Acquaye
