Netflix Keeps Beating Expectations As Streaming #1
Netflix always seems to be at the top of the streaming game, and some investors are especially bullish on the company after the company smashed Wall Street expectations for Q2. The streaming giant added 8 million subscribers, giving it a worldwide total of 277 million, showing that it’s still the service to beat. However, management is forecasting growth will slow down, though it’s possible this is just an attempt to temper expectations.
Password Sharing Crackdown Paid Off
Netflix’s rapid streaming subscriber growth last year is also reportedly due to its much-maligned decision to crack down on password sharing. But what’s bad for the consumer apparently isn’t bad for the company, as the streamer continues to exceed Wall Street’s predictions. The advertising-supported tier of Netflix that was launched not long ago has also performed extremely well, offering a lower price in exchange for being subject to advertisements.
Acquiring Other Streamer’s Exclusives
Netflix’s ad tier reportedly has accounted for 45 percent of all new sign-ups in the last 18 months since its introduction. In response to these wins, some Wall Street analysts have pushed up their price targets for the company’s stock despite it staying mostly static amid the changes.
Amongst the reasons analysts are feeling optimistic about Netflix are the continued revenue from the ad tier, price hikes, Netflix’s focus on original content, and the company’s continued wins of getting once-exclusive content from other streaming services on its platform.
Serves The Shareholders
Whether you like Netflix’s changes or hate them (social media sentiment suggests the needle is strongly in the hate category) the company likely isn’t going to change its strategy anytime soon. As much as people have been chagrined by the price hikes and the password crackdowns, it has clearly been good for the company’s bottom line and KPIs. Until there’s significant blowback, the company is, of course, going to continue to serve the shareholders rather than the customers.
The King Of Streaming
It’s certainly an about-face from the struggles Netflix was facing in the streaming landscape not long ago when the fourth season of Stranger Things helped bring subscribers back en masse to the platform in 2022. Now, Netflix seems to be firmly on the throne compared to streaming competitors like HBO Max, Disney+, Prime Video, and other major players.
Of course, this is Netflix’s primary business, while those other examples have plenty of other ventures that leech attention away from streaming, so it’s not too surprising that Netflix continues to be in the top spot.
Netflix Just Keeps Winning
With that being said, streaming continues to become more popular, and other companies seem to be jealous of Netflix’s streaming success, with recent reports that Disney CEO Bob Iger has been sitting in on streaming meetings to help improve the Disney+, Hulu, and ESPN+ services.
Netflix’s recent successes are certainly undeniable, and it’s hard to see things slowing down anytime soon, especially as the service continues to bring in tons of people to check out popular shows like Bridgerton, The Umbrella Academy, and upcoming seasons of Stranger Things and Squid Game. For the time being, Netflix seems to be winning, and Wall Street agrees.
