Netflix plans to increase its investment in film and television production this year, but profits may come under pressure.

Netflix announced its fourth-quarter earnings after the market closed on Tuesday, which overall exceeded Wall Street expectations. However, the outlook for this financial quarter remains cautious as program expenses increase and the costs of acquiring Warner Bros. Discovery rise. The streaming giant said on Tuesday that it plans to increase its film and television production expenditure by 10% in 2026, while continuing to advance its acquisition of Warner Bros. studios and streaming business. This deal will merge two of the world's largest entertainment giants. Last year, Netflix's program production expenses were around $18 billion, with a nearly 8% increase in users, surpassing 325 million. Executives at Netflix said on a conference call with investors on Tuesday that the company is increasing investments to seize "attractive investment opportunities." The company has acquired streaming rights from Universal Pictures and Sony Pictures, is expanding live events and video game business, and will launch a new mobile user interface later this year. The acquisition of Warner Bros. is expected to add approximately $275 million in costs for Netflix this year. These expenses are expected to weigh on the company's profits in the short term. Netflix expects to earn $0.76 per share this financial quarter, lower than the Wall Street expectation of $0.82. Revenue is expected to reach $12.2 billion, in line with expectations. After the financial report was released, Netflix's stock price fell 5.1% in after-hours trading, to $82.60.