Netflix (NFLX) surged after fourth-quarter results beat expectations, raised its 2025 revenue forecast and added nearly 19 million subscribers.
Michael Pachter, managing director of equity research at Wedbush Securities, joined Morning Brief to highlight the success of Netflix’s ad-supported layer, which has helped reduce customer churn.
Pachter said adding a low-cost advertising layer “more than [Netflix’s] Wildest Dreams” as they were able to “convince people who were opting out of the deal to downgrade to an ad-supported tier.
Regarding live sports, Pachter believes Netflix should focus on special events such as the FIFA Women’s World Cup rather than competing with Amazon (AMZN) and YouTube for full-season sports rights.
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This article was written by Josh Lynch
