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Netflix saw an impressive surge in subscriber numbers during the fourth quarter, gaining 19 million new users. This boost was driven by the release of the latest Squid Game episodes and live events like the highly anticipated Tyson vs. Paul boxing match.
By the close of 2024, Netflix had amassed a total of 301 million subscribers, marking a 15% increase compared to the previous year, and surpassing Wall Street’s 293 million expectation. This achievement fueled a post-market rally, with Netflix shares leaping over 13%.
To keep up with its expanding content offerings, Netflix announced upcoming price hikes in regions like the US, Canada, Portugal, and Argentina. In the US, the most popular plan is set to jump by $2.50 to $17.99 per month. The basic ads-supported option will see a $1 increase, taking it to $7.99.
“Netflix is showcasing its strength by adjusting pricing in light of its robust, varied content library compared to competitors,” noted analyst Paolo Pescatore from PP Foresight.
The streaming giant made significant strides in the sports sector during Q4. The Tyson vs. Paul match alone drew 65 million streams globally. On Christmas, Netflix also aired two NFL games, featuring none other than Beyoncé at halftime, each game captivating 24 million viewers. Additionally, Squid Game’s second season debuted to a staggering 68 million views in its inaugural week.
Entering 2025, Netflix seems energized, thanks to a year exemplified by record subscriber growth and renewed expansion efforts, as highlighted in its letter to shareholders. Despite a fiercely competitive market, Netflix emphasizes the advantage of not managing the challenges faced by traditional Hollywood studios grappling with television’s decline.
The company’s revenue hit $10.2 billion for the quarter, prompting an upward revision of its annual revenue forecast by $500 million, marking an up to 14% increase from 2024. Profitability also showed impressive gains with earnings per share more than doubling to $4.27 and operating income shooting up 52% to exceed $2 billion.
Notably, Netflix announced this quarter’s report would be its final release of subscriber figures—a metric long scrutinized by investors—but assured continued updates at key milestones.
A crackdown on password sharing launched in May 2023 contributed to a rapid subscriber base expansion, propelling Netflix stock up over 80% in 2024. However, 2025 began on a volatile note for the shares.
As the temporary boost from these measures fades, Wall Street anticipates a slowdown in subscription growth. To counteract this, Netflix is investing heavily in live events to draw new subscribers. Recent initiatives include weekly WWE Raw streams under a decade-long contract with the wrestling entertainment powerhouse.
Company executives believe live events will attract the audiences coveted by advertisers. Though the advertising business had a rocky introduction back in fall 2022 amidst sectoral challenges, Netflix is focusing on enhancing its appeal to advertisers as a key strategy in 2025 to significantly grow ad revenue, as iterated in their letter to shareholders.
