Bloomberg Daybreak: US Edition Instant Reaction: Netflix Posts Record Quarter
Jan 21, 2025
Netflix achieves a record-breaking quarterly subscriber gain, adding 18.9 million customers, thanks to the return of popular shows and live sports. The conversation dives into how this robust growth contrasts with analyst forecasts and creates ripples in the stock market. The hosts also discuss Netflix's strategic investments in content and their mastery in viewer engagement, positioning the platform as a leader in the competitive streaming arena. Additionally, insights into upcoming AI infrastructure announcements hint at intriguing financial implications.
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Record Subscriber Growth
- Netflix's Q4 2024 subscriber growth exceeded expectations, doubling Wall Street projections.
- This success is attributed to live sports and returning hit shows like Squid Game.
Revenue Exceeds Expectations
- Despite concerns about revenue expectations due to the strong dollar, Netflix actually increased them.
- Live sports contributed significantly to the 18.9 million subscriber surge.
Cost of Live Sports
- Live sports programming is expensive, requiring high viewership to be profitable.
- Netflix's NFL games generated over $100 million in ad revenue, exceeding the $75 million cost per game.