On Monday, Scott Stuber, Netflix’s global film chairman who helped build the company’s powerhouse movie studio, announced he plans to leave the company in March.īut even before the announcement, the number of shows and original programming Netflix churned out had already hit its peak, according to data analyzed by MoffettNathanson. This year, the company will see a shakeup in its film department. Netflix’s fourth-quarter earnings report could provide key insight into the company’s original programming strategy. “But it certainly isn’t anything that’s transformational for the business.” “Video games are a difficult business, I think they’ve actually done a pretty good job there,” he said. However, there remains the question of whether these investments will become big revenue drivers for the company, said Matthew Harrigan, a media analyst at Benchmark. “From a strategic perspective, we believe we can build games into a strong content category, leveraging our current films and series,” Peters said. On the company’s last earnings call, co-CEO Greg Peters said investments in gaming could help draw new subscribers. In December, Netflix launched three mobile-friendly games from Grand Theft Auto, one of the best-selling video-game franchises of all time. The fourth quarter also saw a big expansion in Netflix’s video game offering. In late February, the company will also stream the 30th Annual Screen Actors Guild Awards live. The show will begin streaming live on Netflix in January 2025. The 10-year deal is valued at more than $5 billion, according to a filing from TKO Group Holdings, the parent company of WWE. The streaming service acquired the exclusive rights to “WWE Raw,” currently seen on Comcast’s USA cable network. On Tuesday, Netflix revealed its biggest investment into live programming yet. Related article Dwayne ‘The Rock’ Johnson scores mega payday to join the WWE’s board (Photo by Pablo Cuadra/WireImage) Pablo Cuadra/WireImage/Getty Images MADRID, SPAIN - OCTOBER 19: US actor Dwayne Johnson attends the "Black Adam" photocall at NH Collection Madrid Eurobuilding hotel on Octoin Madrid, Spain. Last year was tumultuous for the entertainment industry as writers and actors went on strike concurrently for several months for the first time since 1960. Overall, Wall Street is expecting Netflix to add 6 million global net paid subscribers, according to data from FactSet. Reif Ehrlich estimates that Netflix’s crackdown may have pushed some password “borrowers” onto Netflix’s cheapest ad-supported subscription tier, fueling its growth. That move has so far proven successful, boosting new subscriber signups and possibly inspiring other streaming services to implement their own crackdowns. Last year, Netflix began cracking down on password sharing worldwide. Earlier this month, Amy Reinhard, Netflix’s president of advertising, said Netflix’s ad tier hit more than 23 million monthly active users. In October, Netflix said it raised the price of its premium ad-free plan to $22.99 while its one-stream basic plan rose to $11.99.Ī growing share of users seem to be signing up for the cheaper option. The plan is significantly cheaper than Netflix’s ad-free offerings, at $6.99 per month in the US. Only five years ago, Netflix co-founder Reed Hastings blasted advertising as “exploiting users.” Since then, Netflix has changed its tune, launching a “Basic with Ads” subscription tier in November 2022. How successful is Netflix’s foray into advertising? Netflix, which is in a quiet period ahead of earnings, declined CNN’s request for comment. The company reports fourth-quarter earnings on Tuesday after the bell, providing key insights into its financial health. “It has become increasingly clear that Netflix has won the ‘streaming wars,’” wrote Bank of America media analyst Jessica Reif Ehrlich, pointing to the fact that legacy media companies, like Disney, are now reevaluating the money they’ve poured into their own streaming strategies.īut the question of whether Netflix’s dominance can carry into 2024 remains. Last week, Bank of America crowned the streaming service “the king in streaming.” Once considered an upstart disruptor in Hollywood, Netflix has been the top dog in streaming for more than a decade. Discovery’s stock is down 22% over the same period (WBD is CNN’s parent company). So far, Netflix remains one of the only profitable major streaming services, and investors seem to feel good about the company’s prospects: Netflix’s stock is up 36% compared to one year ago, while Disney’s stock fell 10%, and Warner Bros. Netflix appears to be in a dominant position in Hollywood’s battle for eyeballs and ad dollars.
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