Netflix experiences record sign-up numbers, surpassing the surge seen during the pandemic.

Netflix experienced a surge in sign-ups towards the end of last year as customers responded to the company's crackdown on password-sharing by creating their own accounts. In the three months ending in December, the streaming giant added over 13.1 million subscriptions, marking the highest increase since 2020 and extending a period of continuous growth that began the previous year. Many new members were drawn to Netflix's cheapest plan, despite the inclusion of advertisements. In fact, the plan accounted for 40% of the new sign-ups in the 12 countries where ads are offered, including major markets like the UK and US. Netflix expressed confidence in its growth trajectory and announced plans to raise prices, indicating that occasional price increases are necessary to reflect its investments in improving the platform. Interestingly, these gains come as a surprise, considering the company had resisted selling ads for years, citing concerns about negatively impacting the viewer experience, complicating its business operations, and raising privacy risks. However, an unexpected decline in subscribers in 2022 prompted Netflix to explore new ways to attract viewers and generate more revenue. In addition to implementing advertisements and cracking down on password-sharing, Netflix is experimenting with live events as a means of attracting new audiences. Recently, the platform announced a 10-year, $5 billion deal to bring WWE Raw, the most popular weekly pro-wrestling show, to its platform. Other streaming competitors, such as Amazon, are also making similar moves to expand their offering of live sports events. Starting this month, Amazon will begin showing ads to Prime members who do not pay an additional $2.99 per month. Analysts, like Paolo Pescatore from PP Foresight, see Netflix's quarterly results as a validation of the company's strategy, dubbing it the "king among all streamers." Despite the addition of ads, Netflix does not expect advertising to significantly contribute to its growth this year. However, the inclusion of ads in addition to subscription fees has the potential to increase the revenue earned per account, which has garnered excitement on Wall Street. Netflix previously hinted at the growing popularity of its ad-supported plan, reporting over 23 million accounts in January, compared to 15 million in November. By offering a strong lineup of programs, including successful shows like the Beckham documentary series and Adam Sandler's Leo, Netflix managed to surprise analysts who had concerns that sign-ups would decline without a stand-out hit being released. The platform received 18 Oscar nominations, with Maestro starring Bradley Cooper and Carey Mulligan being nominated for "Best Picture." As a result, Netflix's shares jumped by more than 6% in after-hours trading. Overall, Netflix reported revenues of over $33.7 billion in 2023, a 6% increase compared to the previous year, with profits reaching $5.4 billion.