Netflix surpassed expectations in its fourth quarter (Q4) performance on January 23, adding a staggering 13.1 million subscribers, well beyond the anticipated 8.97 million. This growth marked its largest-ever Q4 increase, bringing its total subscribers to an impressive 260 million. The after-hours trading saw a notable 8.3% surge in Netflix shares, contributing to a remarkable 65% gain in stock value throughout 2023.

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.