The first issue is that Netflix relies on connected TV (CTV) growth and TV viewers' adoption of streaming -- both of which slowed during the year. The second issue is that Netflix's 222 million paying customers shared passwords with 100 million non-paying households -- a considerable loss of potential revenue.
Netflix's viewership atrophy may be due to implementing paid sharing, leading casual viewers to drop off and account holders to downgrade their plans or cancel their subscriptions altogether. This decline will come despite offering a lower-priced ad-supported option.
It now has 238.4 million global paid memberships, and its revenue is $8.2 billion. "We expect revenue growth to accelerate in the second half of '23 as we start to see the full benefits of paid sharing plus continued steady growth in our ad-supported plan," the company wrote in its report.
It's one of the first major streaming services to put limits on password sharing, a move that comes after Netflix experienced its first subscriber loss in a decade—losing almost a million during the summer of 2022, though it regained those declines in the second half of the year.
But as pre-pandemic habits return, Netflix has struggled to attract new sign-ups - and maintain the loyalty of existing members, especially as the rising cost of living leads to people cutting back. The company also faces fierce competition from the likes of Apple TV, HBO Max, Amazon Prime and Disney+.
On May 23, 2023, Netflix fully rolled out its new pricing plans, which include the ability to add other members at a cost, to the U.S., U.K. and around 100 other countries. To navigate through Netflix's stringent measures, users can employ NordVPN's advanced Meshnet technology.
In October 2022, JP Morgan analyst Doug Anmuth issued a note predicting that Netflix's move to incorporate an ad-supported product offering could drive the growth of an additional 7.5 million new subscribers to its existing subscriber base in 2023 within its North American markets, rising further to 22 million ...
Netflix stock is predicted to have a positive outlook for the coming years. With the data prediction projecting that its price will steadily increase, it is expected to reach $310 in 2023, $514 in 2024, $690 in 2025, $867 in 2026, $980 in 2027, $1,068 in 2028 and finish with a high of $1,166 in 2029.
Amazon Prime Video. One of Netflix's primary competitors is Amazon Prime Video. Also, simply known as Prime Video, Amazon Prime Video is a subsidiary of the American multinational technology company, Amazon.
Netflix generated $31.6 billion revenue in 2022, a 6.7% increase on the previous year.
Total debt on the balance sheet as of March 2023 : $14.43 B
According to Netflix's latest financial reports the company's total debt is $14.43 B. A company's total debt is the sum of all current and non-current debts.
As of Q2 2023, the Europe, Middle East, and Africa have the highest number of paying customers. They gather around 79.81 million Netflix customers between them. With 75.57 million members, U.S.A. and Canada are in the second position.
Disney Plus has a massive library of nostalgic movies, and if paired with Hulu and ESPN Plus, you'll have more than enough to watch for the whole family. Netflix is more expensive, but it has a lot more for adults.
Can Netflix turn things around over the next five years? Looking further ahead, analysts expect Netflix's revenue to only increase by about 10% in both 2023 and 2024. However, they still expect its earnings to improve by 12% in 2023 and grow another 19% in 2024.
Best streaming service overall
There's a reason why Netflix has become shorthand for streaming in general. The former movie rental service evolved into the top-tier streaming app that's a must-have in 2023, even if you're paying extra to share your password.
Netflix stock valuation
A premium valuation like this prices in substantial earnings growth for years to come. Fortunately, analysts are expecting exactly this. On average, analysts expect Netflix's earnings per share to increase at a rate of 22% annually over the next five years.
Disney is aggressively forecasting that Disney+ itself will overtake Netflix in 2024, as it remains in high growth mode. It added 14.4 million subscribers in the second quarter, beating analysts' expectations, while Netflix struggled this year with its first loss of subscribers in a decade.
NFLX Stock 12 Months Forecast
Based on 32 Wall Street analysts offering 12 month price targets for Netflix in the last 3 months. The average price target is $461.73 with a high forecast of $600.00 and a low forecast of $293.00. The average price target represents a 8.01% change from the last price of $427.50.
Netflix Australia pricing starts at $6.99 per month for an ad-supported entry-level service, $10.99 per month removes ads, $16.99 per month gets you 1080p streaming, and $22.99 per month gets you the best possible plan with all the bells and whistles.
Netflix market share falls back to earth
As search volume for Netflix content wanes, interest is increasing steadily in Disney Plus, HBO Max, and Apple TV Plus. Netflix's market share among JustWatch users has declined from roughly 46% to 33% since January 2020. Disney Plus has risen from 10% to roughly 18%.