“We exceeded our ads revenue target in the fourth quarter,” commented Netflix Co-CEO Greg Peters. “We doubled our ads revenue year over year last year. We expect to double it again this year.”
Netflix’s stock surged by some 13 per cent in extended trade following the results news, lifting its stock market value by almost $50 billion.
Reacting to the results, Paolo Pescatore of PP Foresight commented: “Netflix reaffirms its leadership position and is absolutely running away in the streaming market. It is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals. These latest results reaffirm the company’s strategy and validates move into live sports that will drive subscribers and drive engagement. More importantly it will help monetise its base through advertising and sponsorships.”
Ross Benes, senior analyst at eMarketer, said: “Two of Netflix’s official 2025 priorities are increasing ad revenue and developing more live programming. What was recently anathema, is now among the company’s top priorities. So when Netflix stated in its shareholder letter that ‘we’re not focusing on acquiring rights to large regular season sports packages’, it wouldn’t be surprising for Netflix to reverse course in the near future and acquire more sports rights. Expect the company to continue adapting by embracing strategies that it said it wouldn’t.”
Netflix additionally announced that it would soon be raising prices in the US, Canada, Portugal and Argentina as it spends more on programming.