Netflix, Inc. (NASDAQ:NFLX) Q4 earnings call, held on Tuesday evening, highlighted the company's transition to becoming a multi-dimensional entertainment hub.
A primary focus was the pending Warner Bros. Discovery (WBD) acquisition, which Co-CEO Ted Sarandos described as a "strategic accelerant" to the company's core mission.
While the deal moves through regulatory review, Sarandos expressed confidence, stating it is "pro-consumer, it is pro-innovation… and it is pro-growth," and noted that HBO is a "very complementary service to ours."
Shift to Live Events
Executives clarified their evolving philosophy on viewer data, moving away from simple total hours toward the quality of time spent.
Co-CEO Greg Peters noted that "view hours is basically a very broad metric" and emphasized that "all hours of engagement are not the same."
This is particularly true for live programming, which Peters argued has "the potential to deliver outsized value" for both members and advertisers.
Netflix is doubling down on this category, having already "executed more than 200 live events." Looking forward, the company is expanding the efforts globally, including the "World Baseball Classic in Japan" and the upcoming "Skyscraper Live."
Video Podcasts and Cloud Gaming
The company is aggressively diversifying its content formats. Sarandos announced the launch of video podcasts, describing them as "a modern talk show" experience with "hundreds" of shows generating "passionate engagement."
Simultaneously, Netflix is scaling its "cloud first game strategy," aiming to make TV-based games more accessible.
"We are just scratching the surface today… but we already are seeing multiple instances of how this approach … drives more engagement, more retention," Sarandos remarked.
Financial Outlook and Growth
Looking ahead, CFO Spencer Neumann projected 2026 revenue at "$51 billion, which is up 14% year on year," driven by membership, pricing and a "rough doubling of our ad revenue… to about $3 billion."
Netflix expects the growth to persist even as the company integrates WBD, which Neumann noted will result in roughly 85% of the revenues coming from the existing core business.
NFLX Price Action: Netflix stock was down 3.13% at $84.53 at the time of publication Wednesday, according to Benzinga Pro.
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