Netflix Reports Surge in Subscribers, Announces Price Hikes
Netflix has reported a strong end to 2024, adding nearly 19 million subscribers during the holiday season and surpassing 300 million global subscribers. The streaming giant attributed its growth to sustained investment in popular shows and films while announcing price increases 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.
The new pricing structure sees U.S. premium and standard memberships rise by $2 per month to $25 and $18, respectively. The standard ad-supported plan will now cost $8, reflecting a $1 increase.
For the final quarter of 2024, Netflix posted a profit of $1.87 billion on revenue of $10.25 billion, marking double-digit growth compared to the same period in the previous year. The announcement sent Netflix shares soaring more than 14%, with after-market trades valuing the stock at over $993.
Executives expressed optimism heading into 2025, citing record net additions of 41 million subscribers in 2024 and a re-acceleration of growth. They highlighted that Netflix’s engagement remains unmatched, with paid members averaging two hours of daily viewing.
The company acknowledged the competitive landscape of both traditional entertainment and big tech, emphasizing the need for continuous innovation. “We have to improve all aspects of Netflix — more series and films our members love, a great product experience, enhanced pricing strategies, and expansion into live programming and games,” the statement read.
Netflix closed the year with a robust lineup, including the second season of the global phenomenon “Squid Game.” The Korean dystopian series remains the platform’s most-watched show and has cemented South Korea’s influence on global pop culture alongside works like the Oscar-winning “Parasite” and K-pop sensations BTS.
Ad-supported plans, introduced in late 2023 alongside a crackdown on password sharing, have become a significant growth area, now accounting for more than 55% of new signups in eligible markets. Netflix said these plans grew by nearly 30% from the previous quarter, and the company plans to further prioritize its ad business in 2025.
Looking ahead, Netflix projects 2025 revenue between $43.5 billion and $44.5 billion, with a target operating margin of 29%. The company also teased upcoming content, including new seasons of popular shows like “Wednesday” and “Stranger Things,” as well as NFL games on Christmas Day and a 52-week lineup of WWE professional wrestling.
Additionally, Netflix is exploring strategic partnerships in the U.S., offering bundled subscriptions with rivals such as Peacock and Apple TV.
As Netflix continues to outperform the broader market, with its shares gaining 80% in the past year, it remains the leader in the streaming industry despite growing competition from platforms like Disney+.
