Streaming service Netflix (NFLX -2.73%) has amassed worldwide popularity thanks to its vast library of popular series and movies that are no longer syndicated on network television. However, in recent years, competing media companies have invested in their own proprietary streaming services, and many have moved their content off of Netflix.

As a result, Netflix has spent the last several years reinventing itself into more of an end-to-end entertainment business. While many old shows and movies can still be found there, the company has made a conscious effort to develop its own original content.

Have these investments been worth the price tag? On March 2, investors may get an answer. Let's dig into why that is such an important date for Netflix and explore what's at stake for the company's reputation.

What is happening on March 2, and why is it important for Netflix?

On Sunday, March 2, some of the biggest names in entertainment will gather at the Dolby Theater in Hollywood, California, for the Academy Awards ceremony. Oscars are some of the most coveted prizes in Hollywood, and studios have a vested interest in winning them. Winning can strengthen studios' reputations and make producers feel more assured that their financial investment in the content was worth it.

This year, Netflix secured 18 Academy Award nominations, the most among any studio. This is the sixth year in a row that it either received the most nominations by itself or shared that distinction.

Given that Netflix's foray into original content is still relatively nascent compared to many of its peers, it's impressive to see the company recognized by Oscar voters over the likes of Walt Disney, Paramount, Sony, Warner Bros. Discovery, and other legacy studios in recent years.

Image source: Getty Images.

How has Netflix historically fared at the Oscars?

While it's clear that Netflix has demonstrated its ability to secure Oscar nominations, how has the company actually fared at the star-studded event?

Data source: Netflix.

In total, Netflix has won 23 Oscars across 152 nominations, or about 15% of the time. While there isn't really a definitive way to measure if this win rate is good or bad per se, there are some operational metrics we can look at to see if its investment in original content has been worth it.

Why Netflix stock could see a post-Oscars jolt

The graph illustrates Netflix's revenue, operating expenses, and net income over the past decade. Since it has started to become recognized by the academy, the company's revenue growth has far outpaced that of its expense profile.

NFLX Revenue (Quarterly) data by YCharts.

To me, the number of wins at this year's Oscars ceremony is not really the point. It's that the company is continuing to be increasingly recognized at the highest level, despite competing with a number of large studios and content creators.

Whether the company wins any awards or not, it's highly likely that its content will land on the radar of new viewers -- some of whom may become compelled to sign up and explore the platform. This is important because Netflix employs a subscription-driven revenue model.

As the company has invested billions into developing original content, its recognition within Hollywood has helped it acquire more viewers who tend to stay on the platform as recurring paying customers.

As such, the positive unit economics provide Netflix with the financial flexibility to continue doubling down on its creative ambitions -- an investment that appears to be paying off, as underscored by rising Oscar nominations and wins, as well as continued soaring revenue and profits.

For these reasons, I think Netflix stock is a compelling buy right now, prior to the Oscars broadcast.