Netflix’s sentiment soared in 2023, fueled by strategies including a new advertising plan, the introduction of paid sharing options, and a dynamic expansion into the gaming sector – underpinned by a remarkable increase in monthly active users (MAUs) and the successful diversification of its entertainment offerings, says GlobalData.
The research group’s Company Filing Analytics Database – which analyses and showcases sentiments across companies and industries by scanning through earning transcripts and filing documents – found that Netflix’s overall sentiment increased consistently in 2023 for three straight quarters through Q4 2023.
According to Netflix’s latest transcript, the streaming service currently boasts 23-million MAUs, a significant rise from 15-million in December 2023 and a substantial jump from just 5-million in May 2023.
Misa Singh, business fundamentals analyst at GlobalData, says: “Netflix posted good results for 2023 and, more specifically, in the last quarter. It is also optimistic about future growth as it continues to grow in the gaming sector and is making several adjustments in its pricing approach. A deep dive into GlobalData’s filings analytics database reveals Netflix’s enhanced focus on generating new content and returning seasons of its award-winning shows.”
In addition, the company unveiled a new advertising plan that enables the business to charge customers less. The US advertisements plan showed a favourable effect, with a total average revenue per member (ARM) higher than the normal plan. It also launched a measurement partnership with Nielsen in the US.
Moreover, it introduced a paid sharing option as an important initiative to improve the streaming platform for paying members and build a business.
The American entertainment company is growing its product line, generating new revenue streams, and entering the gaming sector. The firm views video games as a new programming genre like how it had expanded into unscripted TV, animation, and original movies. For instance, the Grand Theft Auto trilogy from Rockstar Games was released in Q4 2023. This launch resulted in extraordinary download and engagement numbers, establishing Netflix as one of the leading platforms for mobile game downloads over the course of several weeks.
Furthermore, Netflix delivered successful television shows including popular new series and return seasons in almost every TV category. Through its nearly worldwide reach, personalisation, and creative marketing the company is concentrating on bringing creators and enormous audiences of ardent followers together. For example, the recent announcement of WWE Raw live event programming is right in the sweet spot for the sports business.
“Netflix’s 2023 trajectory, marked by strategic adaptability and content diversification, reflects a visionary approach in the streaming industry,” says Singh. “As it seamlessly integrates gaming and optimises user engagement, the company stands at the forefront of evolving entertainment landscapes and promising a dynamic and exciting future.”