Netflix's stock price has fluctuated in the past four years, experiencing peaks during the epidemic, and then facing the ups and downs of major events such as the overall slump in the technology industry, competition from Disney and Amazon's streaming platforms, and the Hollywood writers' strike. The company delivered a beautiful report card at the end of the year, with third-quarter profits and revenue far exceeding analysts' expectations. The stock price closed up 11% on Friday, reaching a record high.

Netflix adjusts internal direction

Netflix announced impressive financial results on September 30, with earnings per share reaching $5.40 and revenue of $9.83 billion. It added 5.1 million new subscribers this quarter, far exceeding the London Stock Exchange and other Wall Street analysts estimate.

It is worth noting that even if the number of new subscribers increases significantly, Netflix will no longer focus on the growth of subscribers.

In the past, many users took advantage of Netflix's shared password mechanism. As long as one person paid, all relatives and friends could log in to Netflix to watch movies. Netflix discovered this vulnerability and has now canceled this mechanism. Accounts and passwords cannot be shared with others. It once lost many users. But it wasn't long before the company's losses were covered by advertising revenue.

Currently, Netflix has 282.7 million total subscribers worldwide. However, starting next year, Netflix will focus its performance indicators on overall revenue analysis and financial growth and profit and loss statements, rather than the number of subscribers. This will allow subscribers to stick to Netflix. Revenue from playing ads is a new indicator.

Netflix estimates that total revenue next year will reach between $43 billion and $44 billion, and it is actively expanding into the European market and considering adjusting subscription fees in different regions. In 2025, it will be deployed in newly developed games and sports fighting event live broadcasts.

Netflix’s advertising strategy breaks geoeconomic constraints

Netflix's new built-in advertising membership system breaks Netflix's tradition of not including advertising. Members who pay a basic monthly fee are forced to watch ads before they can go back to watch movies. This new change has brought Netflix 35% of revenue.

Netflix's main signature since its inception is that viewers can enjoy watching complete series and movies without advertisements. However, this tradition has finally been broken. Viewers in certain countries and regions must watch advertisements before they can continue to watch movies. In response to this major change, Netflix's advertising department has also expanded its non-English product placement advertising business in response to the needs of various languages ​​and consumer markets to break geo-economic restrictions.

Now with built-in ads, members who pay the base subscription fee of $6.99 won’t have to worry about a price increase for the time being. Netflix retains a low subscription fee available in some regions, allowing them to watch most of its movies and series despite ads.

Film selection for all tastes, across borders and language barriers

Netflix's original American drama series have always been the main meal on the menu, but original series produced through cross-border cooperation and local production are also popular among viewers on Netflix, regardless of language and cultural barriers.

The food competition show "Black and White Chef", which has no national boundaries, has been very popular with audiences from all over the world since its launch in September. The class struggle that the show targets is different from the usual cooking shows, allowing Michelin-starred chefs to use their lifelong reputation to fight against the class struggle. Betting on the skills of an unknown street chef is very enjoyable for the audience to watch.

This year, Netflix has launched new series such as "The Three-Body Problem", "The Ground Master", "Beverly Hills Cop", and "Black and White Chef", and will soon release "Squidward Game", which has broken the charts in terms of reputation and ratings in recent years. "In the second season, these cross-border cooperation film and drama productions not only allow the audience to see more diverse creations, but also bring a new atmosphere to the local advertising industry. Advertisements can be produced in local languages ​​​​and delivered to audiences in different regions.

This article Netflix is ​​back in glory! The stock surged 10% at the end of the year, reaching a record high. The article appeared first on Chain News ABMedia.