It's a really big earnings week for Wall Street. Netflix is making headlines with its fourth-quarter earnings, but that's not the only reason, as our business correspondent, Erin Delmore, in New York explains.

Netflix has a big number to celebrate, 13.1 million subscribers added in the last quarter of 2023. That's the most gain we've seen in a quarter since the onset of the pandemic, when viewers worldwide stayed in and tuned in. The new subscriber numbers allowed Netflix to close out 2023 three with more than 260 million total members worldwide. And the numbers aren't the only thing that put Netflix in the news Tuesday. The streaming giant scored 18 Oscar nominations, beating its rivals and leading the pack. That came on the heels of news that Netflix is Head of film, Scott Stuber, is leaving to start his own media company. And this, the streaming company bought the exclusive rights to Raw, luring in WWVE viewers and betting big on live sports. The 10-year deal reportedly cost Netflix more than five billion dollars.

That is a lot of money. Well, I talked to Claire Huxley, Strategy Director at Design, Bridge, and Partners, to ask about Netflix and whether actually their clamp down on password sharing was a reason for that high number of new subscribers.

Yeah, I think we're seeing a few things going on here. I think there is a large proportion of those subscribers that are going to be due to the crackdown on password sharing. Previously, they were subscribed or watching Netflix, but they weren't paying for it, so suddenly they are in full view. We're also seeing subscribers who might otherwise have lapsed, who are now being brought in and retaining on the platform because of the new, cheaper, ad-funded basic plan. But There's also going to be a proportion in there who are being compelled by Netflix's reputation in the market for producing fantastic content and have been drawn in by some of those big hitters and those Oscar and any award winners that you just mentioned. I think those are the subscribers we're really interested in from a more long term brand building point of view for Netflix.

What do you make if it's moving to live sport and wrestling?

I think it's fascinating, and I think it's indicative of how Netflix is always trying to innovate. So not only were they the first streamer in the market in a big way, they've been doing things throughout their history, like creating interactive content such as Bandersnatch and moving into gaming. They currently have over 100 games on the platform in development. And I think live streaming is that last, most recent example of how they are always looking to stay relevant, keep innovating, and bring different types of content to their audiences. One of the interesting things about the announcement about the WWE partnership, as they said, we don't necessarily have all the technology yet to the live sports streaming, but by the time it airs, we will. There's this real shut sign that they are betting on their ability to be those tech innovators.

Do you think then that for Netflix, it's quitened the naysayers who were warning about the fact that the competition now is super hot in this market, whereas Netflix was first mover, it was a disruptor, but now it's quite an old player in the game. And yet, as you're saying, it's proving to be still innovative and still very much thinking ahead. It's not going to have a Kodak moment.

It's an interesting one because obviously, they created the category, but as you say, they don't necessarily, therefore, are always going to win in the category. So what can they do to stay relevant? I think the big challenge all streamers have is that they are only as good as their next piece of content. And there's a real need to make people loyal to the brand of the streamer, whether that's Netflix, Amazon Prime, HBO Max, versus just the latest big name show that they've released. This idea that all streamers are on a bit of a hamster wheel where they're constantly having to produce content. So if Netflix can position itself as actually being above any one piece of content and being known for its innovation, being known for being willing to bet on content that others wouldn't make, for example, when we look at something like Squid Game, not sure that an HBO or a Disney Plus would have commissioned a piece of content like that. Perhaps that's somewhere where Netflix can actually win because they can send the message that, Subscribe to us and we will continue to produce the things you want.

Claire Huxley there on Netflix.