Netflix Inc. (NASDAQ: NFLX) inches up 0.18% in pre trading session on Monday as the production company recently revealed that Jon Spaihts, known for Dune and Doctor Strange, will writing the screenplay for its forthcoming film, which is based on the popular Gears of War video game series. The action is indicative of Netflix’s strategy to appeal to Gears of War fans.
In the face of fierce competition from companies like Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Disney (NYSE: DIS), Netflix is attempting to establish its presence in new genres and consequently grow its subscriber base.
In the past year, Netflix shares have dropped by 21.5%, outperforming the 20.5% decrease in the Zacks Consumer Discretionary sector. Nevertheless, over the same time span, Netflix shares underperformed Apple while outperforming Amazon and Disney. Amazon, Disney, and Apple shares have all decreased, by corresponding percentages of 39.5%, 31.1%, and 7.2%.
The massive streaming service exceeded its projection of 4.6 million users by 7.66 million paying customers in the fourth quarter of 2022. The corporation had 230.75 million paying members worldwide at the end of the fourth quarter, an increase of 4% year over year.
Netflix is making a lot of effort to increase its membership base. In order to increase income, it has also removed the password-sharing option while introducing games to keep users interested.
Yet, market share and popularity of streaming competitors are still rising. Apple TV+, Apple’s streaming service, is steadily but firmly growing in popularity thanks to its widely renowned and well-liked series like Ted Lasso.
Apple’s The Boy, the Mole, the Fox, and the Horse also received this year’s Best Animated Short Film Oscar nomination. Three Academy Awards were given to Apple for CODA last year. Netflix may have difficulties with Disney’s next productions, including Star Wars: Visions, Loki Season 2, Echo, and others.
Netflix projects $2.82 in profits per share for the first quarter of 2023. The $2.81 per share Zacks Consensus Estimate is set for the current quarter.
Netflix anticipates accelerating revenue growth in 2023 on a constant currency basis. Due to the more extensive implementation of paid sharing, paid net additions are projected to be higher in the second quarter of 2023 compared to the first quarter.
