Netflix hits 13M new fans, revenue soars

Netflix recently announced a substantial growth in their subscriber base with a surge of 13 million new subscriptions, marking a nearly 13% year-over-year growth. The growth, now reaching over 260 million subscribers, comes after initiatives such as cracking down on password sharing and introducing cheaper ad-supported subscription options. The streaming giant reported a 12.5% increase in revenue, amounting to $8.8 billion in Q4 2023, and an operating income of $1.5 billion.

The company's ad-supported plan appears to be a significant success, accounting for 40% of new sign-ups in regions where it is available. Netflix anticipates continued revenue growth, especially through its ads business, and is planning to phase out its Basic plan starting in Canada and the UK in the second quarter. While expecting typical seasonal declines in the first quarter, Netflix predicts an overall increase in subscriptions throughout the year.

Netflix is also aiming to continue investment in original content and has hinted at an upcoming release for "Squid Game Season 2" in 2024. While acknowledging the industry trend of consolidation, Netflix has expressed disinterest in acquiring linear network assets. Price increases are also on the horizon as Netflix looks to reinvest in improving their service further.

Additionally, Netflix has secured the exclusive streaming rights for WWE Raw beginning January 2025, reinforcing its interest in live programming content.

Yes, Netflix has stated that as they invest in and improve the service, they will occasionally ask members to pay a little extra, which is meant to drive additional investment and improve the growth of their service.

Netflix, founded in 1997, initially started as a DVD rental service by mail and has evolved into one of the world's leading streaming entertainment service providers. They were a key player in the shift towards online content streaming, which has significantly altered how people consume television and movies. With a heavy emphasis on original content, Netflix has produced hit series like "Stranger Things," "The Crown," and "Squid Game," which has been confirmed for a second season.