Investment 30 Finance Monthly. NETFLIX The company significantly outperformed investor expectations in the fourth quarter. At the moment, the stock was showing a rise of 15%. The main reason was the addition of 7.66 million paid subscribers. This surprised analysts, who had expected an increase to only 4.57 million, especially in a market environment where many media companies were laying off employees and cancelling TV shows. Netflix spent $17 billion (£13.6 bn) on content creation in 2022, surpassing every company in the sector except Disney. Despite the positive trend of subscription growth in the fourth quarter of 2022, revenues increased by only 1.9% year-on-year. This came at a time when earnings per stock fell from $1.33 (£1.07) in the fourth quarter of 2021 to $0.12 (£0.097) for the same period in 2022, with earnings down 91%. Consequently, the company has taken two radical initiatives to revive its results. First, it will introduce a paid password-sharing feature. The service plans to charge basic account holders an additional fee for anyone who views the service from outside the home. Secondly, the company has been advertising for about two months now. Netflix CFO Spencer Neumann said that the company intends to increase revenue by 10 per cent with this move. 2022 has been a tough year for Netflix, but investors are showing renewed interest in the company as it remains the global leader in streaming media. New revenue initiatives should help boost revenues as early as the second half of 2023. $17 billion on content creation in 2022, surpassing every company in the sector except Disney. Netflix spent
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