Netflix announced on Tuesday that it added nearly 19 million subscribers during the holiday season, closing 2024 with over 300 million global subscribers. The company credited its consistent investment in shows and films for fueling this growth while also revealing price hikes in Argentina, Canada, Portugal, and the United States.
“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the company stated in a letter to investors.
In the United States, the price of premium and standard memberships will increase by $2 per month to $25 and $18, respectively. The standard ad-supported tier will rise by $1 to $8 per month.
Netflix reported a profit of $1.87 billion on $10.25 billion in revenue for the final quarter of 2024, marking double-digit growth compared to the same period the previous year. This strong performance caused Netflix shares to soar by more than 14%, reaching over $993 in after-market trading.
“We enter 2025 with strong momentum, coming off a year with record net additions of 41 million subscribers and re-accelerated growth,” company executives said. They noted that Netflix is in a “leadership position” regarding engagement, with subscribers spending about two hours per day on the platform.
Despite its success, Netflix acknowledged the intense competition it faces from both traditional entertainment providers and big tech companies. The company plans to continue improving its platform by offering more content, refining user experiences, expanding advertising capabilities, and exploring new areas such as live programming and gaming.
Netflix closed the year with strong offerings, including the highly anticipated second season of the global hit Squid Game. The dystopian Korean drama remains the most-watched Netflix TV series to date, solidifying South Korea's cultural prominence alongside the Oscar-winning film Parasite and K-pop superstars BTS.
Ad-supported plans have also gained traction, accounting for over 55% of signups in regions where they are available and growing by nearly 30% from the previous quarter. Expanding its ad business remains a key focus for Netflix in 2025.
In late 2023, Netflix introduced an ad-subsidized subscription tier alongside a crackdown on password sharing, both aimed at bolstering subscriber growth. For 2025, the company forecasts revenue between $43.5 billion and $44.5 billion, targeting a robust 29% operating margin.
Upcoming releases include new seasons of fan favorite series like Wednesday and Stranger Things. Additionally, Netflix plans to broadcast 52 weeks of WWE programming and NFL games on Christmas Day in the United States. The company has also begun offering bundled subscription packages with competitors like Peacock and Apple TV.
Despite formidable rivals, Netflix continues to dominate the streaming landscape. Disney+, launched in November 2019, has faced challenges despite featuring blockbuster franchises like Marvel and Star Wars. Over the past year, Netflix shares have risen 80%, significantly outperforming the S&P 500 and NASDAQ indices, reinforcing its position as a leader in the streaming industry.
