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Netflix added a record 19mn subscribers in the fourth quarter as viewers flocked to stream the new installment. Squid game and live sporting events including the highly anticipated boxing match between Mike Tyson and Jake Paul.
The increase meant Netflix have 301mn total subscribers by the end of 2024, 15 percent from a year earlier and more than the 293mn expected by Wall Street. Its shares rose more than 13 percent in after-hours trading.
Netflix said it will raise prices in the US, Canada, Portugal and Argentina. The most popular US plan will increase by $2.50 per month to $17.99, while its cheapest US plan will increase by $1 to $7.99 per month.
“(Netflix) is now flexing its muscles by adjusting prices given its strong slate and variety of programming compared to rivals,” said Paolo Pescatore, an analyst at PP Foresight.
I to distribute Pioneer made a big move into live sports in the fourth quarter, with the boxing match between Tyson and Paul attracting 65mn streams worldwide. On Christmas Day it broadcast two Football League games, one of which featured Beyoncé as a halftime player, reaching 24mn viewers each. Netflix has also premiered a second season of Squid gamewhich reached a record-breaking 68mn views in its first week.
“We enter 2025 at a strong pace, exiting the year with record (subscriber) additions and rapid growth,” the company wrote in a letter to shareholders.
It added that while the industry remains “extremely competitive”, it does not have the “disruptions” to manage the decline in television that traditional Hollywood studios are experiencing.
Revenue was $10.2bn in the fourth quarter, and the company raised its revenue guidance for this year by $500mn, up 14 percent from 2024. Earnings per share doubled to $4.27 from $2.11 last year, along with operating income. passed $2 billion, up 52 percent.
This is the last time Netflix will report quarterly subscriber numbers, which have been closely watched by investors for years. But it said it would continue to release figures “as we cross key boundaries”.
Its subscriber base has grown since the crackdown on password sharing was launched in May 2023, pushing shares over 80 percent by 2024. But the stock has had a rough start to 2025.
Wall Street had been expecting fee growth to slow as the initial rate hike slowed. But Netflix is making a big bet on live events to draw new subscribers, and this month it released its weekly streams of WWE Raw – it's part of a 10-year deal with the wrestling entertainment team.
Executives say live events will help deliver audiences that advertisers desire. The advertising industry has had a rough start since it was introduced in the fall of 2022, due to weakness in the sector.
“The priority for 2025 is to improve our marketing to increase our sales revenue,” it said in a shareholder letter.