Pre-reading questions:
- What streaming platforms do you find most commonly used or preferred by people you know, and why?
- Do you usually watch content on streaming platforms like Netflix, or do you prefer traditional television? Why?
Vocabulary:
- mark /mahrk/
- analyst /AN-l-ist/
- nevertheless /nev-er-thuh-LES/
- enthusiasm /en-THOO-zee-az-uhm/
- content /KON-tent /
[verb] – to signify, indicate, or represent a particular point or event
The groundbreaking research marked a turning point in the field of medicine.
[noun] – someone whose job is to study or examine something in detail, in order to discover or understand more about it and often to make predictions (= statements about what will happen in the future) relating to it
The analyst carefully examined the financial data to provide insightful predictions about the stock market’s future performance.
[adverb] – despite what has just been said or referred to
The weather was unexpectedly cold; nevertheless, we decided to go for a hike and enjoy the crisp winter air.
[noun] – a feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it
Despite the challenges, the team’s enthusiasm for the new project remained high, showcasing their energetic interest and eagerness for business growth.
[noun] – television programs, films, and other media offerings
The streaming service announced plans to expand its content library by adding more original series and exclusive films.
Article reading:
Media analyst Jessica Reif Ehrlich from Bank of America declared Netflix the victor in the “streaming wars,” despite slightly missing per-share earnings estimates at $2.11. Nevertheless, the company reported a robust revenue of $8.8 billion, surpassing both forecasts and its own guidance. Netflix attributes this success to popular shows like “Squid Game: The Challenge” and “All the Light We Cannot See.” Co-CEO Ted Sarandos expressed enthusiasm about studios being more receptive to licensing during the investor livestream. Looking ahead, Netflix foresees healthy double-digit revenue growth for 2024, emphasizing ongoing investment in advertising. The company predicts advertising will become a primary revenue driver by 2025. Netflix also eyes potential growth in the gaming sector, noting tripled engagement in its early foray into games. With plans to increase content spending, including a significant deal with World Wrestling Entertainment, Netflix aims for strategic and responsible growth in the continually evolving media landscape.
Comprehension questions
- When did Netflix release its Q4 performance results?
- How many new subscribers did Netflix add in Q4, and how did this compare to expectations?
- What was the after-hours trading reaction to Netflix’s Q4 performance?
- According to Jessica Reif Ehrlich, what title did Netflix earn in the “streaming wars”?
- What was Netflix’s total subscriber count after the Q4 increase?
Discussion questions
- Have you ever subscribed to a streaming service like Netflix that suddenly became very popular? If yes, how did it change the way you watch shows? If not, do you think having popular shows influences people to subscribe?
- From the article, can you think of a time when a company did better than expected, like Netflix in the fourth quarter? How might this success affect the company’s plans for the future?
- Do you think Netflix’s strategy of investing in a diverse portfolio of shows and expanding into gaming is a wise move for its future growth?
- With Netflix doing well in the “streaming wars,” what difficulties might other streaming services face in competing with such a successful platform? How could they overcome these challenges?
- How do you think the shift towards advertising as the main source of revenue by 2025 will impact the way users experience platforms like Netflix? What positive and negative effects can you imagine resulting from this transformation?