Netflix optimise sa stratégie publicitaire et renforce sa sécurité: des résultats tangibles

Netflix Inc’s Advertising Success

Netflix Inc. has seen an impressive surge in advertising revenue, and it is expected to be a major talking point when the company reports its quarterly results on January 23.

The success of Netflix’s new advertising-supported service has resulted in analysts from Oppenheimer raising their price target for the stock to $600, the highest among Wall Street analysts.

According to Oppenheimer analyst Jason Helfstein, the pace of growth in subscribers suggests significant room for subscription growth in 2024, leading to increased estimates for net additions in the fourth quarter and beyond.

Analysts’ Projections and Share Performance

Wells Fargo and BofA Securities analysts have also increased their estimates for Netflix net additions, based on their research and market trends.

Despite these positive projections, shares of Netflix were down slightly in late afternoon trading on Wednesday, hovering at $477.74.

The optimistic outlook from analysts is driven by a robust digital ad market that has shown resilience as we transition from 2023 to 2024, with significant growth reported in the fourth quarter.

Impact of Advertising and Subscriber Growth

Netflix’s strategic shift towards advertising and efforts to crack down on shared accounts have contributed to improved financial performance and an increase in subscribers. The company, with 247 million subscribers, added 10 million new members last year, underscoring its popularity.

The rise of Netflix, along with other streaming services, has led to a decline in the average number of subscriptions per person, indicating a shift in consumer behavior. The stickiness of services like Netflix, Prime Video, and Hulu remains high, while there is a trend of shared account users transitioning to their own subscriptions or additional members.

Source : www.morningstar.com