Netflix announced its fourth quarter 2024 results on Tuesday, revealing a gain of nearly 19 million subscribers during the holiday season, pushing its total subscriber base past 300 million. The streaming giant also disclosed price increases in several markets, including the United States, LiveMint reported quoting AFP.
The market responded to the strong results, causing the price of Netflix shares to rise 14% in after-hours trading to USD 993 per share.
Netflix executives attributed the growth to sustained investment in original shows and films, culminating in a successful 2024 lineup, including the second season of Squid Game, its most-watched series ever.
The company reported USD 1.87 billion in profit and USD 10.25 billion in revenue for Q4FY24, reflecting double-digit growth compared to the prior year. Over the whole year, Netflix achieved a record net addition of 41 million subscribers.
“We enter 2025 with strong momentum and a leadership position in engagement, averaging two hours daily per paid member,” executives said in a letter to investors.
To continue investing in content, Netflix announced price hikes for its premium and standard plans in the US to USD 25 and USD 18 per month, respectively. It will raise its ad-supported tier by USD 1 to USD 8 per month. Similar adjustments are being made to pricing for Argentina, Canada, and Portugal.
Netflix emphasized its strategy to enhance offerings, including advertising capabilities, live programming, and games. Ad-supported plans now account for more than 55% of sign-ups in markets where available, a 30% increase from the previous quarter.
The company reiterated its focus on expanding its ad business and strengthening its pricing strategy, describing these as top priorities for 2025.
Netflix forecasts revenue between USD 43.5 billion and USD 44.5 billion for 2025, with a target operating margin of 29%. Key upcoming releases include new seasons of popular shows such as Wednesday and Stranger Things. The platform also plans to air WWE programming and NFL games during the holiday season.
In the US, Netflix is experimenting with bundled subscription options featuring services such as Peacock and Apple TV.
Despite intense competition from traditional entertainment and big tech, Netflix remains the dominant force in the streaming market. Its shares have risen 80% over the past year, significantly outpacing the S&P 500 and NASDAQ indices.
Meanwhile, Disney continues to face challenges despite its Marvel and Star Wars franchises. Netflix’s consistent growth underscores its position as the reigning leader in global streaming, the company said.