Netflix makes a comeback! Stock soared 10% last weekend to reach an all-time high

Over the past four years, Netflix has experienced fluctuations in its stock price, reaching a peak during the pandemic, followed by challenges in the overall tech industry, competition from streaming platforms like Disney and Amazon, as well as major events such as the Hollywood writers' strike. Despite these ups and downs, the company delivered impressive results at the end of the year, with third-quarter profits and revenue far exceeding analysts' expectations. On Friday, 10/18, the stock price surged 11%, reaching a historic high.

Netflix Adjusts Internal Direction

Netflix's financial report released on September 30 was impressive, with earnings per share reaching $5.40 and revenue totaling $9.83 billion. The company added 5.1 million new subscribers this quarter, far exceeding estimates from the London Stock Exchange and other Wall Street analysts.

It is worth noting that despite a significant increase in new subscribers, Netflix will no longer focus solely on subscriber growth numbers.

In the past, many users took advantage of Netflix's password-sharing mechanism, where one person pays and friends and family can all log in to watch. Netflix has since addressed this loophole by discontinuing password sharing. Although the company initially lost some users, the deficit was quickly offset by advertising revenue.

Currently, Netflix has a total of 282.7 million subscribers worldwide. Starting next year, Netflix will shift its performance indicators to overall revenue analysis, financial growth, and profit and loss statements, rather than solely focusing on subscriber numbers. This new approach aims to retain subscribers on Netflix to generate revenue through advertisements.

Netflix projects total revenue next year to reach between $43 billion and $44 billion. The company is actively expanding in the European market and considering adjusting subscription fees in different regions. By 2025, Netflix plans to introduce new developments in gaming and live sports events.

Netflix's Advertising Strategy Breaks Geographical Economic Limits

Netflix's new in-built advertising membership system breaks the tradition of ad-free viewing. Subscribers paying the basic monthly fee are now required to watch advertisements before resuming their content, resulting in a 35% increase in revenue for Netflix.

Since its inception, Netflix has been known for offering ad-free viewing experiences. However, this tradition has now been broken, and viewers in specific countries must watch ads before continuing to watch content. To accommodate this significant change, Netflix's advertising department has expanded its non-English language advertising business to meet various language and consumer market demands, breaking geographical economic limits.

The introduction of in-built ads allows members paying $6.99 for the basic subscription to temporarily avoid price hikes. Netflix retains lower subscription fees in certain regions, allowing viewers to watch most content even after viewing ads.

Diverse Content Selection Crosses Borders and Language Barriers

Netflix's original American series have always been a staple on its menu, but international collaborations and locally produced original series are equally popular on the platform, transcending language and cultural barriers.

The international cooking competition show "Black and White Chefs," launched in September, has been well-received by audiences worldwide. The show's class struggle theme, different from typical cooking programs, pits Michelin-starred chefs against lesser-known street chefs, providing a highly entertaining viewing experience.

This year, Netflix introduced new series such as "The Three-Body Problem," "The Groundsman," "Beverly Hills Police," and "Black and White Chefs," and is set to release the highly acclaimed "Squid Game" Season 2 at the end of the year. These international collaborative productions not only allow viewers to see more diverse content but also bring a new dimension to local advertising industries, as ads can be tailored to different regions based on local languages.