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.



Berlin Film Festival Organizers Unveil 2025 Competition Line-up

File Photo: Executive Director of the Berlin International Film Festival Mariette Rissenbeek and Artistic Director of the Berlin International Film Festival Carlo Chatrian, Lupita Nyong'o, Jury President and jury members Brady Corbet, Ann Hui, Christian Petzold, Albert Serra, Jasmine Trinca and Oksana Zabuzhk stand onstage during the opening gala of the 74th Berlinale International Film Festival in Berlin, Germany, February 15, 2024. REUTERS/Annegret Hilse
File Photo: Executive Director of the Berlin International Film Festival Mariette Rissenbeek and Artistic Director of the Berlin International Film Festival Carlo Chatrian, Lupita Nyong'o, Jury President and jury members Brady Corbet, Ann Hui, Christian Petzold, Albert Serra, Jasmine Trinca and Oksana Zabuzhk stand onstage during the opening gala of the 74th Berlinale International Film Festival in Berlin, Germany, February 15, 2024. REUTERS/Annegret Hilse
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Berlin Film Festival Organizers Unveil 2025 Competition Line-up

File Photo: Executive Director of the Berlin International Film Festival Mariette Rissenbeek and Artistic Director of the Berlin International Film Festival Carlo Chatrian, Lupita Nyong'o, Jury President and jury members Brady Corbet, Ann Hui, Christian Petzold, Albert Serra, Jasmine Trinca and Oksana Zabuzhk stand onstage during the opening gala of the 74th Berlinale International Film Festival in Berlin, Germany, February 15, 2024. REUTERS/Annegret Hilse
File Photo: Executive Director of the Berlin International Film Festival Mariette Rissenbeek and Artistic Director of the Berlin International Film Festival Carlo Chatrian, Lupita Nyong'o, Jury President and jury members Brady Corbet, Ann Hui, Christian Petzold, Albert Serra, Jasmine Trinca and Oksana Zabuzhk stand onstage during the opening gala of the 74th Berlinale International Film Festival in Berlin, Germany, February 15, 2024. REUTERS/Annegret Hilse

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Richard Linklater's new feature about a Broadway composer, a documentary about young people in war-torn Ukraine and a homage to 1960s' spy films were among the films unveiled on Tuesday as part of the 2025 Berlin Film Festival's competition line-up.

"This is a major A-list festival with a thriving market," said new festival director Tricia Tuttle, with guests from more than 150 countries coming to the 75th edition of the festival, Reuters reported.

The 19 films in contention for the festival's Golden Bear top prize feature several directors making their return to the German capital, including Romania's Radu Jude, with his new dark comedy "Kontinental '25," and South Korea's Hong Sang-soo with his languorous family comedy "What Does that Nature Say to You".

Linklater, the US director known for "Before Sunrise," makes a buzzy return to the festival after more than a decade with "Blue Moon," about composer Lorenz Hart - the other half of famous songwriting team Rodgers and Hart - with an all-star cast including Ethan Hawke, Margaret Qualley and Andrew Scott.

"Reflection in a Dead Diamond" is Belgium-based duo Helene Cattet and Bruno Forzani's maximalist spy feature, while "Dreams" stars Jessica Chastain as an heiress who falls in love with a Mexican ballet dancer, and "If I Had Legs I'd Kick You" about a child's mysterious illness features Rose Byrne along with late-show TV host Conan O'Brien and rapper ASAP Rocky.

"Timestamp" is Kateryna Gornostai's observational documentary about life in Ukraine after Russia's 2022 invasion marks one of the more overtly political entries this year.

POLITICS AS USUAL?

The Berlin Film Festival, which this year runs from Feb. 13 to 23, is considered more political than its peers - Cannes, Venice, Sundance and Toronto.

"We do not shy away from this. It's arguably in the DNA of the city itself and also in the festival itself," US-born Tuttle told reporters.

The festival ends on the day of Germany's national election, though Tuttle said it does not plan to mark the event in any way other than encouraging people to vote.

Outside the competition, Oscar-winning "Parasite" director Bong Joon-ho's sci-fi "Mickey 17" with Robert Pattison will have its German premiere during the festival, as will James Mangold's Bob Dylan biopic with Timothee Chalamet "A Complete Unknown".

Tuttle took charge amid financial uncertainty at the festival, which had to slim down its program last year, and Berlin slashed its 2025 culture budget by millions of euros.

However, ahead of Tuesday's news conference, Germany's culture ministry said it would contribute an extra 1.9 million euros ($1.97 million) to the festival for its 75th anniversary.

That boost "allows us to deliver the festival with a balanced budget this year and... to relive the festival in the way that we want to in this anniversary year," said Tuttle.

US director Todd Haynes heads the international jury that will award this year's top prize. "Run Lola Run" director Tom Tykwer's new film "The Light" will open the festival.