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Netflix has its biggest increase in subscriber growth in its history

PIX Now Afternoon Edition 1-23-24
PIX Now Afternoon Edition 1-23-24 09:28

SAN FRANCISCO — In the final 3 months of 2023, Netflix increased its subscriber growth by 13.1 million marking the companies biggest increase in consumers in its history.

Despite Netflix's crackdown on viewers sharing the streaming video service with one another, the company continues to flourish in record numbers.

Netflix showed their ability to bring on more subscribers during Tuesday's fourth-quarter results announcement despite the increase in costs associated with accessing its collection of TV shows and movies.

The streaming giant hinted at its strategy to rationalize increased subscription prices and attract additional advertisers to a cost-effective plan featuring commercials. This was emphasized by the unveiling of a $10 billion deal on Tuesday, securing the inclusion of the widely popular wrestling program, WWE's "Raw," in its service.

By the end of 2023 Netflix had more than 200 million subscribers — an annual increase of nearly 30 million subscribers. It was a massive contrast compared to 2022's viewership number in crease of 8.9 million.

Netflix implemented measures to limit access for non-paying customers who were using the passwords of paying subscribers. This proactive approach led to a significant overall increase, marking a successful rebound for the company.

Its approach caused a boom in Wall Streets interest with an incredible 65% surge in its stock price last year.

Prominent media giants such as Walt Disney Co. and Warner Bros. Discovery have encountered difficulties in showcasing the profitability of their video-streaming services. This has resulted in an otherwise dull performance in their stock shares.

With Netflix bringing on its financial strategy and by reducing its programming budget, all while simultaneously raising the cost of its premier streaming plan by 10%, it addressed investor demands for increased profits. This approach proved positive in the last quarter, resulting in significant annual earnings of $937.8 million, equivalent to $2.11 per share, obtained from a net income of $55.3 million, or 12 cents per share. In comparison to the same period the previous year, revenue experienced a significant 13% increase, reaching $8.83 billion.

William Lankford contributed to this report.

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