What happened
Shares of Netflix (NFLX 10.21%) climbed 11.5% in June, according to data provided by S&P Global Market Intelligence. This rise takes the streaming giant's shares up 49.3% year to date.
Image source: Getty Images.
So what
Netflix had reported good traction for its ads tier -- which offered consumers a lower price point -- with engagement higher than expected and little cannibalization seen for its standard and premium plans. The streaming giant has also begun cracking down on account sharing, meaning members sharing their passwords with friends or family.
According to Netflix, more than 100 million households are doing so, and the company is now making each additional household pay for an extra member account. Initial results in Canada, New Zealand, Spain, and Portugal have been positive as the platform sees additional members signing up and contributing additional revenue.
NASDAQ: NFLX
Key Data Points
By the middle of last month, investors were thrilled to note that Netflix had signed up hundreds of thousands of new accounts, according to statistics provided by streaming data provider Antenna. According to Antenna, on each of two days in late May, Netflix saw nearly 100,000 sign-ups, exceeding the spike the company saw during the COVID-19 pandemic. Although cancellations also jumped because of the crackdown, sign-ups easily exceeded this number.
While Netflix refused to confirm or comment on this data, investors were probably optimistic that the streaming giant will report significant growth in subscriber numbers when it reports its second-quarter results on July 19.
Now what
Netflix is not sitting still, though, and continues to invest heavily in its content slate to make its platform more attractive and generate greater customer loyalty. Co-CEO Ted Sarandos recently revealed that up to 60% of members have watched a Korean show, which explains why the company is investing $2.5 billion over the next four years to grow its Korean original content. These shows will come from Korean dramas and sequels to fan favorites.
Meanwhile, the company is also building up its games portfolio, with plans to add much more to its current slate of more than 60 mobile games. Netflix had stated that it has 40 more games planned for release later this year, along with 70 more in development with its partners.
Sixteen games are also being developed in-house, so subscribers can look forward to more than 100 games rolling onto its platform in the next few years. One of those is Oxenfree II: Lost Signals, the much-anticipated sequel to the original Oxenfree, launched on PC and console platforms back in 2016.
