Netflix added 13.1m global paid subscribers in the fourth quarter of 2023 to reach 260.3m, way ahead of analysts’ expectations.
The streamer reported revenue of $8.8bn grew 12.5% year-on-year, delivering slightly above Wall Street expectations.
Net income of $938m and earnings per share of $2.11 dipped below forecasts, yet still outshone the year-ago equivalents of $55.3m and 12 cents per share.
Wall Street had forecast revenues of $8.7bn and $2.22 earnings per share, according to LSEG, the financial data service formerly known as Refinitiv. Free cash flow in 2023 ended at $6.9bn.
Speaking to analysts, co-CEO Ted Sarandos said Monday’s surprise news that chairman of film Scott Stuber will depart in March to launch his own company did not herald a shift in its content strategy.
Stuber led the company’s motion picture efforts for the past seven years and is understood to have advocated for an expanded theatrical release strategy, whereas Sarandos believes in using shorter theatrical release as a promotional ploy prior to dropping new films on the platform.
Netflix’s subscriber add was the big win in the report and came in way ahead of the 8bn-9bn ballpark figure analysts expected. In fact Q4 represented the streamer’s biggest Q4 gain and the second highest quarter overall since Q1 2020, when the onset of the pandemic kept people indoors and drove 15.8m paid global adds.
Membership in North America climbed by 2.8m to 80.1m; by 5.1m to 88.8m in Europe and Middle East; by 2.4m to 46m in Latin America; and by 2.9m to 45.3m in Australia and Pacific.
Shares in Netflix leapt more than 8% in after-hours trading.
Earlier in the day the company announced a $5bn, 10-year deal starting in January 2025 to stream WWE’s weekly wrestling show Raw as it builds out its live offering. As previously announced, the company will stream the Screen Actors Guild Awards on February 24.
Also on Tuesday, Netflix films garnered 18 Oscar nominations.
In a busy few days, Netflix has also been a big buyer in Sundance, in keeping with prior years. On Monday it announced a reported $17m deal for the horror film It’s What’s Inside.
The company noted in its letter to shareholders that it anticipates price rises, and said it had “successfully” addressed account sharing, with “many millions” of members requesting features like Transfer Profile and Extra Member.
Co-CEO Greg Peters noted that the company had considered and rejected an ad policy similar to that employed by Amazon whereby as of this month customers have the option to pay more to avoid ads.
No comments yet