Netflix stock (NFLX) hit an intraday record on Tuesday, rising more than 2% to $711 per share at session highs. The stock’s previous intraday record of $701 dates back to 2021. The stock’s record closing value is just under $692.

On Tuesday, the company again touted its foray into the ad market, announcing in a company blog post that it had secured “an increase in upfront payments for ad sales of over 150% throughout 2023.”

Netflix’s successful pre-negotiations, in which networks and media companies are courting advertising commitments for upcoming series and events, come at a time when the platform is increasingly focusing on live sports and doubling down on its commitment to its biggest shows.

According to the company, upcoming films and series such as “Happy Gilmore 2” and “Squid Game 2” as well as the recent acquisition of live sports content such as the NFL Christmas Day Games and WWE Raw, which launches in January 2024, also contributed to the success.

“Our advertisers continue to be thrilled with our highly engaged audiences and the variety and quality of our programming,” said Amy Reinhard, president of advertising at Netflix.

Reinhard named advertising partners such as LVMH, Amazon, Hilton, L’Oreal and Google. The company will launch its own ad tech platform worldwide in 2025.

But it is not just advertising that is fueling the recent boom.

Analysts have also said the company is well positioned to raise prices. Netflix last raised the price of its Standard package in January 2022, increasing the monthly cost from $13.99 to $15.49. At that time, it also raised the price of its Premium package by $2, to $19.99 per month; in October, the company raised the cost of that package again, to $22.99.

The company has not yet increased the price of its ad-supported offering, which was introduced less than two years ago. At $6.99 a month, it remains one of the cheapest ad-supported plans of any major streaming service.

Netflix has previously stated that its goal is to make advertising a “more substantial revenue stream that contributes to sustainable, healthy revenue growth in 2025 and beyond.” As a result, the cheapest ad-free streaming package will be phased out, leaving the $15.49 Standard package as the cheapest offering for an ad-free experience.

In a note published earlier this month, Jefferies analyst James Heaney said the standard plan would likely be hit by a price increase in December, especially given the company’s foray into sports – a move that “further increases its pricing power.”

“We believe NFLX has been preparing all year for a year-end price increase,” Heaney said. “We view the entry into NFL games (at only about 2% of annual content spend) as a significant subscriber driver in the fourth quarter, providing further tailwind for NFLX’s password sharing initiative and supporting a price increase.”

The story continues

In last month’s earnings call, Netflix said it was making “steady progress in scaling its ad business,” with ad-level memberships growing 34% quarter over quarter, partly due to the elimination of the basic plan in certain markets.

“Given this continued progress, we believe we are on track to reach critical advertiser subscriber levels in our advertising countries in 2025 and create a strong base from which to continue to grow our ad membership in 2026 and beyond,” the company said.

Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and send her an email at [email protected].

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