On Wednesday, January 22, the value of Netflix shares increased by 13%, reaching an all-time high after the streaming giant, betting heavily on sports, was able to add 18.9 million subscribers in the holiday quarter, reinforcing the already significant advantages of the brand over other industry players.
Last Tuesday, January 21, the mentioned company unveiled price hikes in markets including the United States. In this case, the streaming giant’s goal is to boost revenue. The company also aims to shift its focus from increasing the number of subscribers to other performance metrics, such as sales.
Bernstein analyst Laurent Yoon stated that Netflix defied the odds once again, delivering subscriber additions far beyond even the most unreasonable subscriber bogey.
The company’s global subscriber base currently exceeds 300 million. Against the background of this indicator, the brand gains an advantage in the so-called streaming wars and more leverage in talks with marketing firms, as Netflix plans to grow its advertising-supported business.
The streaming giant currently has a market capitalization of about $370 billion. It is worth noting that this figure exceeds the combined values of the brand’s rivals, including Disney, Comcast, Paramount, and Warner Bros Discovery.
Netflix’s stock hit a record high of $988 on Wednesday during early morning trading.
Last year, the value of the streaming giant’s shares increased by more than 80%. Netflix’s expansion into live sports contributed to the corresponding result. In this case, the content includes, among other things, a boxing match between Jake Paul and Mike Tyson, and the debut of popular National Football League games on Christmas Day.
Dan Coatsworth, an analyst at AJ Bell, stated sports rights can be incredibly expensive and it makes sense that a streaming giant has opted to go with special events.
As we have reported earlier, Netflix Tests Its Games on TVs and Computers.
