March 2 is a vital day for Hollywood’s greatest stars.
Streaming service Netflix (NFLX -2.73%) has amassed worldwide recognition due to its huge library of standard sequence and films which are not syndicated on community tv. Nevertheless, lately, competing media firms have invested in their very own proprietary streaming companies, and plenty of have moved their content material off of Netflix.
Because of this, Netflix has spent the final a number of years reinventing itself into extra of an end-to-end leisure enterprise. Whereas many elderly reveals and films can nonetheless be discovered there, the corporate has made a acutely aware effort to develop its personal authentic content material.
Have these investments been definitely worth the price ticket? On March 2, traders might get a solution. Let’s dig into why that’s such an essential date for Netflix and discover what’s at stake for the corporate’s popularity.
What is occurring on March 2, and why is it essential for Netflix?
On Sunday, March 2, a few of the greatest names in leisure will collect on the Dolby Theater in Hollywood, California, for the Academy Awards ceremony. Oscars are a few of the most coveted prizes in Hollywood, and studios have a vested curiosity in profitable them. Profitable can strengthen studios’ reputations and make producers really feel extra assured that their monetary funding within the content material was price it.
This 12 months, Netflix secured 18 Academy Award nominations, essentially the most amongst any studio. That is the sixth 12 months in a row that it both acquired essentially the most nominations by itself or shared that distinction.
On condition that Netflix’s foray into authentic content material remains to be comparatively nascent in comparison with a lot of its friends, it is spectacular to see the corporate acknowledged by Oscar voters over the likes of Walt Disney, Paramount, Sony, Warner Bros. Discovery, and different legacy studios lately.

Picture supply: Getty Pictures.
How has Netflix traditionally fared on the Oscars?
Whereas it is clear that Netflix has demonstrated its capability to safe Oscar nominations, how has the corporate truly fared on the star-studded occasion?
Yr | Oscar Nominations | Oscar Wins |
---|---|---|
2014 | 1 | 0 |
2015 | 1 | 0 |
2016 | 2 | 0 |
2017 | 3 | 1 |
2018 | 8 | 1 |
2019 | 15 | 4 |
2020 | 24 | 2 |
2021 | 36 | 7 |
2022 | 27 | 1 |
2023 | 16 | 6 |
2024 | 19 | 1 |
Whole | 152 | 23 |
Knowledge supply: Netflix.
In whole, Netflix has received 23 Oscars throughout 152 nominations, or about 15% of the time. Whereas there is not actually a definitive method to measure if this win price is sweet or dangerous per se, there are some operational metrics we are able to take a look at to see if its funding in authentic content material has been price it.
Why Netflix inventory might see a post-Oscars jolt
The graph illustrates Netflix’s income, working bills, and internet earnings over the previous decade. Because it has began to turn into acknowledged by the academy, the corporate’s income progress has far outpaced that of its expense profile.
NFLX Income (Quarterly) information by YCharts.
To me, the variety of wins at this 12 months’s Oscars ceremony will not be actually the purpose. It is that the corporate is continuous to be more and more acknowledged on the highest stage, regardless of competing with various giant studios and content material creators.
Whether or not the corporate wins any awards or not, it is extremely seemingly that its content material will land on the radar of recent viewers — a few of whom might turn into compelled to enroll and discover the platform. That is essential as a result of Netflix employs a subscription-driven income mannequin.
As the corporate has invested billions into creating authentic content material, its recognition inside Hollywood has helped it purchase extra viewers who have a tendency to remain on the platform as recurring paying prospects.
As such, the constructive unit economics present Netflix with the monetary flexibility to proceed doubling down on its artistic ambitions — an funding that seems to be paying off, as underscored by rising Oscar nominations and wins, in addition to continued hovering income and income.
For these causes, I feel Netflix inventory is a compelling purchase proper now, previous to the Oscars broadcast.
Adam Spatacco has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Netflix, Walt Disney, and Warner Bros. Discovery. The Motley Idiot has a disclosure coverage.