Netflix
wrapped up 2023 with a bang, adding a whopping 13.1 million new paid subscriptions in the final quarter, thanks to the company's crackdown on password sharing. The streaming giant's fourth quarter performance surpassed all expectations, marking its largest fourth quarter ever -- setting a new record for Netflix. Paid net additions nearly doubled compared to the same period in 2022, driven by the combined effect of stricter password sharing rules and price adjustments in key markets like the US, UK, and France.
"We largely put price increases on hold as we rolled out paid sharing," explained co-CEO
Greg Peters
.
"Now that we're through that, we're able to resume our standard approach." This suggests Netflix may soon implement further price hikes in other regions as it continues to evaluate their impact on engagement, retention, and new user acquisition. "For 2023, we generated $7 billion of operating income, up 23 per cent year over year," said Netflix.
Overall, Netflix ended the year 2023 with impressive financial results:
* Revenue growth: 12% year-over-year, up from 6% in 2022
* Free cash flow: Increased to $6.9 billion
* Operating income: Q4 2023 - $1.5 billion (up from $0.5 billion in Q4 2022); 2023 total - $7 billion (up 23% year-over-year)
Netflix adds live sports
Netflix has announced that it will carry
World Wrestling Entertainment
's (
WWE
) flagship weekly program, "Raw," from next year, deepening its investment in live programming and offering its subscribers outside the U.S. other weekly wrestling shows including "SmackDown." Although company executives said that the deal did not signal a change to its focus on entertainment, it nevertheless sets Netflix on a collision course with traditional media as the streamer builds out its advertising business.
Incidentally,
Amazon Prime Video
, Apple TV+, Warner Bros Discovery's Max and other streaming services already offer live professional sports.
English (US) ·