How do Media Releases Affect Netflix's Stock

International Journal of Economics and Management Studies

© 2024 by SSRG - IJEMS Journal

Volume 11 Issue 12

Year of Publication : 2024

Authors : Raajvir Vijay

10.14445/23939125/IJEMS-V11I12P106

How to Cite?

Raajvir Vijay, "How do Media Releases Affect Netflix's Stock," SSRG International Journal of Economics and Management Studies, vol. 11,  no. 12, pp. 55-68, 2024. Crossref, https://doi.org/10.14445/23939125/IJEMS-V11I12P106

Abstract:

This study investigates the relationship between media releases and Netflix's stock performance, extending the analysis to competitors in the streaming industry. Using data from 2012 to 2024, we examine the popularity of Netflix's content releases, measured through Google search trends, ratings, and social media activity, and correlates with its stock price movements. Our methodology employs a linear regression model, incorporating variables such as show release dates, Google search volumes, and S&P 500 returns. The results reveal a weak positive correlation between Netflix's show releases and its stock returns, but competitor show releases showed negligible correlation. The S&P 500 returns demonstrated the strongest relationship with Netflix's stock movements, underscoring the importance of broader market trends. As measured by Google search volume, public interest showed a minimal negative relationship with stock returns. These findings suggest that while content releases and public interest play a role in Netflix's stock performance, macroeconomic factors and overall market conditions are more influential. This research contributes to the understanding of media influence on financial markets and offers insights for investors and streaming platforms in evaluating the impact of content strategies on stock performance.

Keywords:

Google trends, Media releases, Netflix, Stock returns, Streaming industry.

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