Shares of Netflix ( NFLX 1.45% ) The stock price rose today following an announcement by the streaming company that it experienced significant growth in advertising requests during its upfront ad sales, which increased by over 150% compared to the previous year. This information, shared by Netflix in a recent blog post, demonstrates the continued success of its advertising sector, outperforming traditional media competitors who are facing challenges.
At 12:22 p.m. ET, Netflix’s stock had increased by 1.5% for the day, having previously surged by 3.3% earlier in the trading session. The streaming company’s stock price also exceeded $700 per share for the first time, reaching a record high of $711.33.
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Things are falling into place for Netflix.
In recent years, Netflix has made significant changes to its approach in order to sustain its growth. Co-founder Reed Hastings, who had previously rejected the idea of advertising, decided to introduce an ad-supported option during the pandemic, stating that advertisers were eager to reach viewers. Additionally, Netflix has begun to incorporate live events such as sports, despite avoiding them for most of its existence.
The most recent report on the advertising platform indicates that it is rapidly expanding, with the company attracting close to 40 million new subscribers in the past year. Advertisers are eager to reach Netflix’s audience, which is close to 300 million households. With a business model that prioritizes streaming, Netflix offers brands greater flexibility compared to traditional TV advertising and enables them to measure their performance more precisely.
Netflix has received upfront commitments from various industries, such as automotive, retail, fast-food restaurants, consumer goods, and technology and entertainment.
Competitors of Netflix are facing difficulties.
Netflix’s expansion is happening while its traditional competitors are facing difficulties. Discovery, a company that is part of Warner Bros. Recently, the company recorded an impairment charge of almost $10 billion, leading to a further decline in its stock price. Disney The stock price is currently close to its lowest level in ten years due to challenges in increasing its streaming viewership. Paramount Global is a multinational media conglomerate. The company’s stocks are fluctuating as they look for a possible purchaser.
This has created a chance for advertisers who are keen to reach audiences in their preferred platforms, and Netflix continues to dominate as the top choice. online video industry With the advertising industry growing, Netflix’s stock is expected to continue rising steadily.
