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Netflix Surpasses Expectations With Subscriber Growth
Netflix defies expectations, gaining 13 million subscribers in Q4 and reaching 260 million globally.
Netflix has surpassed Wall Street forecasts by adding an impressive 13 million subscribers in Q4, reaching a total of 260 million global subscribers, a 13% increase. This surge, attributed to popular shows including "The Crown" and "Beckham", marks the highest fourth-quarter growth since the pandemic.
Operating Income Soars Amidst Revenue Growth
The company's operating income witnessed a significant leap to $1.5 billion from $550 million a year earlier, buoyed by increased revenue and controlled spending. Ending the year with a 12.5% revenue growth, Netflix has recovered from the subscriber losses of 2022, which had previously raised concerns about the streaming business model's viability.
Strategic Outlook And Industry Landscape
Netflix maintains a positive outlook, contrasting sharply with traditional Hollywood studios struggling with linear TV declines and streaming losses. Spencer Neumann, Netflix's CFO, expressed a preference for internal development over acquisitions, indicating no interest in linear assets. The company anticipates "healthy double-digit" revenue growth for the entire year and plans to enhance its advertising business and content quality.
Future Plans And Live Streaming Ventures
As Netflix continues its crackdown on password sharing, Greg Peters, co-CEO, expects ongoing growth benefits. Price increases are set to resume after a pause during the crackdown's implementation. Additionally, a $5 billion, 10-year deal with World Wrestling Entertainment marks Netflix's foray into live streaming, although co-CEO Ted Sarandos clarified that this does not signal a broader shift towards conventional sports rights streaming.
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