Netflix, the world’s largest online video service (OTT) company, announced on the 12th (local time) that the number of global users has exceeded 70 million within two years of launching its advertising plan. The stock price hit a 52-week high on expectations that profits would increase by securing subscribers.
On this day, Netflix closed at $819.50 on the NASDAQ market, up 1.75% from the previous day. Based on the closing price, it is the highest price ever since Netflix was listed in 2002. During the day, it rose to $820.37, hitting a 52-week high.
As Netflix’s advertising plan showed results, expectations for good performance pushed up the stock price. On this day, Netflix announced on its blog, “The number of monthly active users of the advertising plan reaches 70 million, and more than 50% of new subscribers in countries that support Netflix advertising are choosing advertising-type membership.” He continued, “For the National Football League (NFL) game broadcast scheduled to be broadcast live on Christmas, all advertising products that can be sold have been sold, and for season 2 of ‘Squid Game’, which is scheduled to be released next month, we have partnered with several advertisers in 12 countries where advertising is supported. “It was concluded,” he added.
This performance is overwhelming competitors and is reflected in the stock price. Barron’s, an American investment media outlet, said, “We focused on expanding our customer base in an environment where consumers feel the burden of subscription fees due to rising prices,” and added, “Netflix is attracting new subscriptions from people (who felt the burden of subscriptions) by introducing a (rather cheap) advertising rate.” “It is being guided,” he said.
In its third quarter earnings announcement last month, Netflix revealed that the number of subscribers worldwide reached 282.72 million, a 14.4% increase compared to the same period last year. The stock price soared 74.92% this year alone, surpassing the annual stock price growth rates of competitors Warner Bros. Discovery (-20.93%), Paramount (-20.49%), and Disney (+11.33%).
Reporter Han Kyeong-kyung [email protected]
