Netflix jumps over 13% in pre-market session: Here's why
Netflix has proven its ability to thrive during Hollywood's writers and actors strikes, gaining more subscribers in the third quarter than in the past three years. It's shares soared 13.5% in premarket trading on October 19, adding nearly Rs. 1.75 lakh crore to its market value. By leveraging its global production capabilities and capitalizing on the financial challenges of its rivals, Netflix amassed 24.7 crore total subscribers, an increase of nearly 90 lakh in just three months.
Strikes impact competitors, Netflix thrives
While Hollywood's ongoing strikes have hit media rivals like Walt Disney, Paramount Global, and Warner Bros Discovery, Netflix has successfully navigated these challenges thanks to its vast international presence and ability to produce content in over 50 countries and languages. As a result, Netflix has managed to fill programming gaps left by the strikes, with original US productions delayed and other TV and streaming companies losing exclusive titles.
'One Piece' success and 'Suits' revival
Netflix's adaptation of the Japanese manga series One Piece has become a massive hit, ranking as the top show in 84 countries, a feat that even popular sci-fi series Stranger Things did not achieve. Moreover, the legal drama Suits, which last aired on the USA Network in 2019, set viewing records when it arrived on Netflix this summer. The streaming service has expertly introduced shows like Suits to new audiences through its extensive distribution network and recommendation system.
Challenges remain amid strike disruptions
Although Netflix has successfully navigated strike-related challenges, it is not immune to disruptions. US-based shows like Stranger Things are on hold until actors return to work. Delays for some of its biggest shows are "problematic" for Netflix because it lacks a back catalog like Disney+ to fall back on, according to Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
