Netflix exceeded Wall Street expectations in its fourth quarter (Q4) performance on January 23, with a robust lineup of shows contributing to its success. The streaming giant added a staggering 13.1 million subscribers in the December quarter, surpassing projections of 8.97 million. This marked its largest-ever fourth-quarter growth, bringing the total number of subscribers to an impressive 260 million. Netflix’s shares saw an 8.3% surge in after-hours trading, concluding a remarkable 65% gain in stock value throughout 2023.

Bank of America’s media analyst, Jessica Reif Ehrlich, noted that Netflix has emerged victorious in the “streaming wars.” Despite falling slightly short of consensus estimates with per-share earnings of $2.11, the company reported revenue of $8.8 billion, surpassing both forecasts and its own guidance. Netflix credits its success to a strong portfolio of intellectual properties, including hits like “Squid Game: The Challenge” and “All the Light We Cannot See.” Co-CEO Ted Sarandos expressed excitement about the studios being more open to licensing, emphasizing Netflix’s readiness for business during the investor livestream. Looking ahead, Netflix anticipates healthy double-digit revenue growth for 2024, emphasizing continued investment in its advertising business and predicting a shift in advertising becoming a primary driver of revenue growth by 2025. The company also highlighted the potential for growth in the gaming sector, citing a tripled engagement in its early foray into the games business. With plans to increase spending on content, including a significant deal with World Wrestling Entertainment, Netflix aims for strategic, responsible growth in the evolving media landscape.