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Netflix Q4 Reports Cement Status as Premiere Streaming Platform

Photo by Dima Solomin via Unsplash

Netflix Q4 Reports Cement Status as Premiere Streaming Platform

By Movieguide® Contributor

Netflix’s stock soared as the streaming platform delivered impressive Q4 results that solidified its king status in the streaming wars.

“It is becoming increasingly clear that Netflix has won the ‘streaming wars,’” wrote Bank of America media analyst Jessica Reid Ehrlich.

“Netflix has already won the streaming wars and this type of strong result/guidance, especially relative to its streaming peers, is what winning looks like,” added Pivotal Research Group analyst Jeffrey Wlodarczak, echoing Ehrlich’s sentiment.

These assertions of Netflix’s dominance came after the company released its 2023 Q4 results, revealing 13.1 million new subscribers and $8.8 billion in revenue—up $100 million over forecasted results.

Netflix has long led the pack, being the first to announce password-sharing crackdowns at the beginning of last year, as well as being the first major streaming site to introduce ads after operating on an ad-free business model for most of its lifetime.

Though these decisions were met with immediate consumer backlash, the long-term results have been extremely positive for the company, paving the way for the rest of the streaming industry to follow suit.

With other streaming services simply following Netflix’s lead, the platform has solidified itself as the winner of the streaming wars —and has the numbers to prove it.

While Netflix rolled out its ad-tier subscription last summer, this subscription level has already shown itself to be a popular choice for consumers, accounting for 30% of new sign-ups during Q3 and rising to 40% of new subscribers for Q4.

The shift in business strategy has proven so popular that the company plans to remove its cheapest ad-free tier to further push consumers down this path. Netflix executives have previously revealed that the ad tier makes more money on average than its least expensive ad-free tier.

Reigning as the leading streaming service, Netflix plans to further leverage its position as its competitors struggle to turn a profit. With money to spend, the platform is looking to license content from its competitors, giving them a financial boost while expanding its library for a fraction of the cost of original content.

“I am thrilled that the studios are more open to licensing again, and I’m thrilled to tell them that we are open for business,” said Netflix Co-CEO Ted Sarandos during a meeting with investors.

The platform, however, will continue to create original content as well—one of the largest drivers of its incredible subscriber retention. Though the company plans to shop around for licensed content, its originals will still remain exclusive to its library.

“It [original content] doesn’t come cheap, and some would balk at Netflix’s annual content budget, but it’s this investment that keeps Netflix’s frame guilded,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

Netflix’s certified dominance and expectation-beating Q4 report led the company’s stock to rise 11%, jumping to a two-year high. Only good things seem to be around the corner for the platform as winners and losers in the streaming space begin to emerge.

Movieguide® previously reported:

While reporting another quarter of shocking growth in its ad-supported subscription tier, Netflix revealed it is preparing to cut its most basic ad-free plan and fully commit to its new business model.

Netflix’s ad-tier subscription has been rolled out in major markets for roughly half a year, and after two quarterly reports revealing intense growth, it is clear that this model will be the future of the industry.

Earlier this week, Netflix released its 2023 Q4 report, showing that the ad tier accounted for 40% of new subscriber signups – up from the already high 30% during Q3. This resulted in a roughly 70% growth in ad-tier subscribers during the last three months of the year.

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Our small team works tirelessly to provide resources to protect families from harmful media, reviewing 415 movies/shows and writing 3,626 uplifting articles this year. We believe that the gospel can transform entertainment. That’s why we emphasize positive and faith-filled articles and entertainment news, and release hundreds of Christian movie reviews to the public, for free. No paywalls, just trusted, biblically sound content to bless you and your family. Online, Movieguide is the closest thing to a biblical entertainment expert at your fingertips. As a reader-funded operation, we welcome any and all contributions – so if you can, please give something. It won’t take more than 52 seconds (we timed it for you). Thank you.

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4000+ Faith Based Articles and Movie Reviews – Will you Support Us?

Our small team works tirelessly to provide resources to protect families from harmful media, reviewing 415 movies/shows and writing 3,626 uplifting articles this year. We believe that the gospel can transform entertainment. That’s why we emphasize positive and faith-filled articles and entertainment news, and release hundreds of Christian movie reviews to the public, for free. No paywalls, just trusted, biblically sound content to bless you and your family. Online, Movieguide is the closest thing to a biblical entertainment expert at your fingertips. As a reader-funded operation, we welcome any and all contributions – so if you can, please give something. It won’t take more than 52 seconds (we timed it for you). Thank you.

Movieguide® is a 501c3 and all donations are tax deductible.