Netflix shifts focus to revenue as it nears final transaction

Netflix nears the final transaction. After years of forecasting subscriber growth, a metric we won’t see again after 2025, the company is preparing its investors by shifting the focus to its maturity: revenue and strategy.

Netflix shifts focus to revenue as it nears final transaction

The third quarter 2024 results should show just that, underscoring solid loyalty growth fueled by new content and strategic directions.

Low-cost subscriptions and shared passwords seem to be a thing of the past for the streaming giant. So, while investors are wary of a potential subscription price hike, which could bring the standard US plan to around $17, the platform’s catalog investments keep viewers engaged and generate additional advertising revenue.

Netflix expands into live programming with new sports and seasonal hits

Seasonal highlights include established hits, from Baby Reindeer to Squid Game Season 2 and Stranger Things, which are expected to entertain a large audience. There’s room for new live events with WWE’s Monday Night Raw and NFL holiday games. This underscores Netflix’s expansion into sports and live programming to attract a broader audience and improve viewer engagement. Investors see this as a strategic move to differentiate Netflix from its competitors, potentially paving the way for future growth in live-streaming content.

With the stock near all-time highs, a solid third-quarter earnings report could solidify Netflix’s position as the streaming leader, even as it continues to explore pricing and content innovations to stay ahead.