PARIS ― Netflix added a net 13.12 million paid streaming subscribers in the last three months of 2023 and ended the year with a new record high of 260.28 million, the company announced.
The subscription growth sent Netflix higher in extended trading hours, up nearly 9 per cent after the earnings release.
Europe, the Middle East and Africa (EMEA) and the Asia-Pacific region led the subscriber growth for the three months ended Dec. 31 and the full year of 2023. EMEA added the most paid subscribers across all regions on a net basis, gaining 5.05 million in the fourth quarter and 12.08 million for 2023.
The streaming giant’s home market — the US and Canada — together added a net 2.81 million subscribers in the fourth quarter, while Latin America added 2.35 million.Netflix credited the quarter’s better-than-expected paid subscription growth to the rollout of a cheaper, ad-supported plan and the crackdown on password sharing.
Netflix shares were up 8.3 per cent in after-hours trading. The stock gained 65 per cent during 2023.
“It is becoming increasingly clear that Netflix has won the ‘streaming wars,'” wrote Bank of America media analyst Jessica Reif Ehrlich.
The company reported per-share earnings of $2.11, falling short of consensus estimates of $2.22 per share. Netflix said the per-share earnings were impacted by a $239 million noncash loss related to currency exchange rates.
Revenue rose to $8.8 billion, topping forecasts and the company’s own guidance of $8.7 billion in the quarter, Reuters reported.
The streaming giant said it expects healthy double-digit revenue growth for full-year 2024, as it continues to add members and invest in its advertising business. Netflix said advertising is not yet a primary driver of revenue growth, but it aims for that to change by 2025.
The company credited gains to the strength of its intellectual property, including “Squid Game: The Challenge,” a reality show based on its most-watched TV series, new original series such as “All the Light We Cannot See,” feature films like Zack Snyder’s “Rebel Moon: A Child of Fire,” and non-English-language programming, including the third season of “Lupin” from France.
It also cited strong demand for licensed titles such as “Young Sheldon.” Co-CEO Ted Sarandos said Netflix has a “rich history” of breaking some of television’s biggest hits, including “Breaking Bad,” “The Walking Dead,” “Schitt’s Creek,” and more recently, “Suits.”
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