Netflix shares hit all-time highs.
On Tuesday, the streaming company’s shares traded at $710, above the 2021 intraday high of $701. The moves come as investors appreciate the company’s investment in live games. Revealing In a blog post, it said, “In line with our expectations, 150% in 2023 and an increase in prior ad sales commitments.”
Upcoming movies and series like “Happy Gilmore 2” and “Squid Game 2,” NFL Christmas Day games starting in January 2024 and recent acquisitions of live sports content like WWE Raw fueled their success. Advertising partnership, Netflix said.
“Our advertising clients are excited about our highly engaged audience and the variety and quality of our programming. For Season 3 of ‘Bridgerton’ — our sixth most popular English-language TV series of all time — we have secured several international title sponsors. L’Oreal, Pure including Leaf, Amazon Audible, Puig, Booking.com, Stella Artois and Hilton,” said Amy Reinhard, head of advertising at Netflix.
By accepting advertising, the company is also in a good position to raise prices.
Netflix recently raised the price of its popular Standard plan In January 2022Raised to $15.49 from $13.99 previously. It raised the price of its premium tier by $2 to $19.99 a month before raising the price of that plan back to $22.99 in October.
The company has yet to raise the price of its ad-supported offering, launched two years ago, which remains one of the cheapest ad plans among all major streaming players at $6.99 a month.
Netflix is available Said before Its goal is to make advertising a “substantial revenue stream contributing to sustained, healthy revenue growth by 2025 and beyond.” As a result, it will phase out its low-cost ad-free streaming plan and offer a $15.49 Standard plan for a lower price for ad-free experiences.
Analysts said the Standard plan is one of the most vulnerable to price hikes later this year.
Netflix’s record-high price action on Tuesday hit shares in mid-July after the company reported revenue guidance for the current quarter that missed Wall Street’s expectations. Shares have been under pressure from the recent sell-off in Big Tech since its recovery.
