Today (Thursday, January 23, 2025) we’ll learn the names of the movies and artists nominated for the most important film awards of the year, the Oscars. In recent years, streaming platforms—most of which are publicly traded—have been playing an increasingly large role at the Oscars. They compete with the major film studios, which are frequently part of expansive media conglomerates. As a result, film enthusiasts can not only watch movies in theaters but also invest in the companies that produce them, thus participating in their potential Oscar success. And it looks like Netflix is giving one of this year’s favorites for the Best Picture Award while posting also very good financial results for the contentment of investors.
We’ve taken a closer look at some films with the greatest chances of receiving nominations. Netflix leads this year’s race with the musical Emilia Pérez, which has received rave reviews from critics, strengthening the streaming giant’s position. Warner Bros. Discovery has an equally impressive lineup: Dune: Part Two from Warner Bros. Pictures continues the epic science fiction saga, while Sing Sing from A24 will appear on the Max platform, boosting offerings both in high-budget productions and ambitious art-house cinema. It’s also worth noting Paramount Pictures with the sequel to the legendary Gladiator, as well as Sony Pictures with the critically acclaimed Conclave featuring an outstanding performance by Ralph Fiennes, which is a Peacock exclusive in the United States.
To bring forward the movie industry, it is important to have financing for the new productions, streaming platforms need quality content to keep viewers engaged and these two facts create an interesting synergy. But to be able to finance great productions, streaming companies also need great financial results. Last night, the streaming giant Netflix reported incredible results for the fourth quarter of 2024. The number of subscribers increased by nearly 15.9% compared to the previous year, reaching a total of 301.6 million. In countries where ad-supported subscriptions are available, 55% of new subscribers opt for the cheaper, ad-supported option. Unfortunately, this is also the last time Netflix will provide overall subscription numbers so investors will have to focus on other metrics to assess the success of the company.
In the fourth quarter of 2024, Netflix exceeded both analyst expectations and its own forecasts for revenue and key profitability metrics. Revenue reached USD 10.25 billion (up 4.3% quarter over quarter and 16% year over year), underscoring the company’s strong market position despite increasing competition. Earnings per share (EPS) were USD 4.27, marking a 102% increase from the USD 2.11 EPS recorded in the fourth quarter of 2023.
Simultaneously, Netflix raised its full-year revenue outlook by 1.1% and increased its projected annual EBIT margin by 100 basis points, to 29%, indicating long-term confidence in the stability of its business model. In the short term, the company displayed slightly more caution—its forecast for first-quarter 2025 revenue is 0.7% lower than previous estimates and its EPS metrics also fell short of the initial projections. Nonetheless, Netflix remains on solid financial footing, holding USD 9.6 billion in cash and steadily reducing its debt, which currently stands at USD 15.6 billion. Moreover, the company continues to exhibit healthy multi-year growth (14.3% revenue growth over two years) and plans to keep investing in innovative formats and local productions to attract additional viewers.
Live sports broadcasts turned out to be a crucial success factor. The Jake Paul vs. Mike Tyson fight attracted 108 million live viewers worldwide—the highest number in the history of live-streamed sporting events. The company intends to continue its strategy of increasing engagement in live sports streaming. The second season of “Squid Game” also contributed positively to the results. In 2025, other hits like “Wednesday” and “Stranger Things” will return, along with more live sports broadcasts.
But there are also risks ahead. Netflix leads in global reach (190+ countries) but faces intense competition in pricing and content from Disney+, Amazon Prime Video, and Hulu. Keeping ahead means keeping the customer base engaged and ready to return to the platform. And for this quality content is needed which translates into rising content costs (average ~64% of revenue). We are seeing market saturation in developed regions and the future might bring regulatory challenges and compliance costs. But the latest results induced optimism in the stock market, making the stock price soar by a maximum of 15% reaching an all-time high of 999 dollars before settling down to an almost 10% rise in the trading session yesterday. Netflix is the 17th most-held stock globally on the trading and investing platform eToro.
