Netflix Shares Soar on Price Hikes and Record Subscriber Gains

FILED - 14 May 2024, North Rhine-Westphalia, Cologne: The word "Netflix" shines brightly at the presentation of one of its series. Photo: Rolf Vennenbernd/dpa
FILED - 14 May 2024, North Rhine-Westphalia, Cologne: The word "Netflix" shines brightly at the presentation of one of its series. Photo: Rolf Vennenbernd/dpa
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Netflix Shares Soar on Price Hikes and Record Subscriber Gains

FILED - 14 May 2024, North Rhine-Westphalia, Cologne: The word "Netflix" shines brightly at the presentation of one of its series. Photo: Rolf Vennenbernd/dpa
FILED - 14 May 2024, North Rhine-Westphalia, Cologne: The word "Netflix" shines brightly at the presentation of one of its series. Photo: Rolf Vennenbernd/dpa

Netflix reaffirmed its dominance of the streaming video market on Tuesday, as its mixture of live sporting events, popular returning series - and singular moments, such as a football halftime performance by Beyonce - helped attract a record number of subscribers over the holiday quarter.
The company added 18.9 million subscribers in its fourth quarter to bring its total global subscriber base to nearly 302 million customers - a number that dwarfs its Hollywood streaming rivals, Reuters reported.
Netflix sought to capitalize on its galloping popularity by raising prices in the US, Canada, Portugal and Argentina as it spends more on programming. In the US, the company's ad-supported service will cost $7.99 a month, up from $6.99, while the premium package will cost $24.99, up 9% from existing pricing.

Investors reacted enthusiastically to the results, sending Netflix's stock surging about 13% in extended trade, lifting its stock market value by almost $50 billion. Over the last year, Netflix shares have gained more than 77%, outpacing the S&P 500's 24% rise.

"Netflix reaffirms its leadership position and is absolutely running away in the streaming market," said Paolo Pescatore of PP Foresight. "It is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals."

The company said its fourth-quarter programming slate surpassed its own expectations, with viewers bingeing on the second season of its dystopian survival thriller "Squid Game," which the company said is on track to become one of its most-watched original series.
Netflix's deepening investment in live-streamed events is drawing tens of millions of viewers. The heavyweight boxing match between Jake Paul and Mike Tyson in November attracted 65 million streams. The two National Football League games on Christmas Day, one featuring Beyonce's halftime performance, brought in an average of 30 million global viewers, ranking among the most-streamed competitions in league history.
“To state the obvious, it’s content that drives users to streaming services," said Forrester Research Director Mike Proulx. "With the biggest bump in subscribers ever, Netflix’s attention to quality content is the reason for an overall strong year and fourth quarter."
Netflix said it has shaken off the impacts of COVID-19 and the 2023 Hollywood writers' and actors' strikes, and is delivering returning seasons of its most popular shows, including the Addams Family series "Wednesday," and the supernatural "Stranger Things."
It will also broadcast more live events, including weekly installments of WWE "Monday Night Raw" wrestling. It secured the rights for the FIFA Women's World Cup in 2027 and 2031, a deal which it says illustrates its strategy to deliver special-events programming, rather than regular season sports packages.
Such live events are attractive to advertisers, because they draw audiences that watch in real time.
"We exceeded our ads revenue target in the fourth quarter," said Netflix Co-CEO Greg Peters, adding, "We doubled our ads revenue year over year last year. We expect to double it again this year."
The company said the ad-supported version of its service accounts for 55% of its new sign-ups in countries where it is available.
Macquarie Equity Research analyst Tim Nollen predicted that ad revenue will increase to $2 billion this year, as more people sign up for the company's advertising-supported tier and Netflix's advertising technology matures. Live events will continue to drive sign-ups, he wrote in an investor note published prior to Netflix's earnings report.
This quarter will also mark the last time Netflix reports subscriber additions, as the company emphasizes other performance metrics including revenue and profit - a change analysts attribute to slowing subscriber growth.
The company reported per-share earnings of $4.27, beating Wall Street's forecast of $4.20 per share, according to an average of projections from 34 analysts. Annual operating income exceeded $10 billion for the first time in the company's history.
Revenue rose 16% over the same time a year ago, to $10.2 billion, compared with Wall Street's estimates of $10.1 billion for the quarter, according to LSEG. The jump in subscribers in the quarter did not create a similar spike in revenue because sign-ups occurred throughout the quarter, said one person familiar with the matter.
The company revised its guidance, projecting revenue of $43.5 billion to $44.5 billion in 2025, an increase of a half-billion dollars over the prior forecast. The updated guidance reflects improved business fundamentals, the company said.
Netflix's board also approved an incremental $15 billion to repurchase shares, which brings the total buyback authorization to $17.1 billion.



Julian McMahon, Actor Who Appeared in ‘Fantastic Four’ Films and TV Show ‘Charmed,’ Has Died

Julian McMahon arrives at the 21st annual Critics' Choice Awards at the Barker Hangar on Sunday, Jan. 17, 2016, in Santa Monica, Calif. (AP)
Julian McMahon arrives at the 21st annual Critics' Choice Awards at the Barker Hangar on Sunday, Jan. 17, 2016, in Santa Monica, Calif. (AP)
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Julian McMahon, Actor Who Appeared in ‘Fantastic Four’ Films and TV Show ‘Charmed,’ Has Died

Julian McMahon arrives at the 21st annual Critics' Choice Awards at the Barker Hangar on Sunday, Jan. 17, 2016, in Santa Monica, Calif. (AP)
Julian McMahon arrives at the 21st annual Critics' Choice Awards at the Barker Hangar on Sunday, Jan. 17, 2016, in Santa Monica, Calif. (AP)

Julian McMahon, an Australia-born actor who performed in two "Fantastic Four" films and appeared in TV shows such as "Charmed,Nip/Tuck" and "Profiler," has died, his wife said in a statement.

McMahon, 56, died peacefully this week after a battle with cancer, Kelly McMahon said in a statement provided to The Associated Press by his Beverly Hills, California-based publicist.

"Julian loved life," the statement said. "He loved his family. He loved his friends He loved his work, and he loved his fans. His deepest wish was to bring joy into as many lives as possible."

McMahon played Dr. Doom in the films "Fantastic Four" in 2005 and "Fantastic Four: Rise of the Silver Surfer," which came out two years later.

Along with "Charmed,Nip/Tuck," and "Profiler," he also had roles in the TV shows "Home and Away,FBI: Most Wanted" and "Another World," according to IMDB.

Actress Alyssa Milano, who appeared with McMahon on "Charmed," mourned his death on social media, saying "Julian was more than my TV husband."

"Julian McMahon was magic," Milano said. "That smile. That laugh. That talent. That presence. He walked into a room and lit it up — not just with charisma, but with kindness. With mischief. With soulful understanding."