Netflix Surges on Record Subscriber Growth, Live Sports Success

Key Highlights

* Netflix shares soar, setting a record high, after reporting a record quarterly subscriber gain.
* The streaming giant added 18.9 million customers in Q4, surpassing Wall Street expectations.
* Global subscribers reach over 300 million, driven by hit content and live sporting events.
* Revenue grew 16% to $10.2 billion, the largest gain since late 2021.
* Netflix plans price increases in the US, Canada, Portugal, and Argentina.

Subscriber Surge and Live Programming Success

Netflix's Q4 subscriber growth was fueled by a mix of programming, including "Carry-On" and "Squid Game" Season 2.
The company's first major live sporting events, featuring the National Football League and Beyoncé's halftime performance, also contributed to record sign-ups.

Advertising Progress and Live Programming Strategy

The company's newly established live programming slate has delivered "must-watch moments" and is seen as vital for its advertising business.
Live programming is expected to be a small percentage of content expense but will provide outsized value.
Netflix shows advertising during live events to all members, not just those on the advertising-supported tier.

Video Games and FIFA Rights

Despite limited success in video games, Netflix continues to expand its programming offerings.
The streaming giant licensed the rights to the FIFA Women's World Cup and is a potential partner for the Ultimate Fighting Championship.

Financial Forecast and Recovery Trajectory

Netflix forecasts Q1 revenue of $10.4 billion and EPS of $5.58, slightly below Wall Street estimates.
The company has rebounded from a recent downturn and is posting record growth while competitors struggle.
Netflix's success highlights its ability to adapt and capitalize on the evolving entertainment landscape.