Los Angeles: Netflix, the US streaming giant, reported more than 230 million users worldwide at the end of last year, above analysts` projections, as popular shows like “Wednesday” and “Harry & Meghan” attracted new viewers.
Additionally, Netflix said that co-founder Reed Hastings was stepping down from his role as CEO after 25 years in control, a period in which the company expanded from a DVD rental service to a juggernaut in the entertainment sector.
Following the presentation of the earnings results, shares of the streaming television service increased by about 7% to $337.31.
The Netflix board has been discussing succession planning for many years, Hastings remarked in a blog post, joking that “even founders need to change!”
When the change of leadership was announced, Netflix reported increasing subscriptions that exceeded even the most optimistic forecasts.
In just three months, the streaming juggernaut claimed to have added 7.7 million new customers, bringing the total number of Netflix users globally to 230 million.
According to Netflix, income should be the fundamental factor in determining the company’s health rather than the number of new customers.
Insider Intelligence head analyst Paul Verna claims that “some number of new clients – we don’t know how many – may be getting lost in the mix – presumably came in on Netflix’s ad-supported tier.”
He said that as Netflix’s ad businesses grow, “that most likely means lower average income per subscriber, which is a metric Wall Street will be paying more attention to.” Netflix aims to encourage users of subscriber-shared passwords to make their payments this year.
According to Netflix Chief Financial Officer Spencer Neumann, “We have tremendous confidence in our ability to increase revenue throughout the year as we scale commercials and offer paid-to-share (of accounts).”
But despite the difficulties, Netflix is one of the few internet behemoths that has won Wall Street’s faith, with its share price rising by about 50% over the previous six months.
When the change of leadership was announced, Netflix reported increasing subscriptions that exceeded even the most optimistic forecasts.
Wednesday, a popular new series that Netflix recognized as being the third most-watched program in the history of the company, was a spinoff of the “Addams Family.”
