Netflix shares rise as subscriber count hits record number

Netflix shares rise as subscriber count hits record number


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Netflix added a record 19 million subscribers in the fourth quarter as viewers flocked to stream the new episode of Squid game and live sporting events, including a much-hyped boxing match between Mike Tyson and Jake Paul.

The increase meant Netflix had a total of 301 million subscribers at the end of 2024, up 15 percent from the previous year and higher than the 293 million expected by Wall Street. Its shares rose more than 13 percent in after-hours trading on Tuesday.

Netflix announced that it would increase prices in the US, Canada, Portugal and Argentina. The most popular plan in the US increases by $2.50 per month to $17.99, while the cheapest ad-supported tier in the US increases by $1 to $7.99 per month.

“(Netflix) is now flexing its muscles by adjusting prices as the program is far stronger and more diverse compared to its competitors,” said Paolo Pescatore, an analyst at PP Foresight.

The Streaming Pioneer made a big push into live sporting events in the fourth quarter, with the boxing match between Tyson and Paul drawing 65 million streams worldwide. Two National Football League games were streamed on Christmas Day that featured Beyoncé as a halftime performer and each averaged 24 million viewers.

The success of live sporting events has increased speculation that Netflix could strike a larger sports rights deal with a league. Ted Sarandos, co-chief executive, said during a conference call that sports rights deals are too expensive – but seemed to leave the door open for discussion.

“We’re excited about everything about NFL games on Netflix in December,” he said. “But it doesn’t change the underlying economic situation that major league sports are extremely challenging throughout the season. If there was a way we could actually make the economics worthwhile for ourselves and the league, we would definitely explore it.

Netflix has also released the second season of Squid gamewhich reached a record-breaking 68 million views in its first week. “We are entering 2025 with strong momentum, having had a year with record new additions (subscribers) and further accelerated growth,” the company wrote in a letter to shareholders.

It added that while the company remains “highly competitive,” it does not have the “distractions” of dealing with the decline of television networks that its rivals in traditional Hollywood studios have faced.

Revenue was $10.2 billion in the fourth quarter, and the company raised its revenue forecast for this year by $500 million, up up to 14 percent from 2024. Earnings per share more than doubled to $4.27 from $2.11 a year ago, while operating income topped $2 billion, up 52 percent.

This is the last time Netflix will release quarterly subscriber numbers, which have been closely watched by investors for years. However, it said it would continue to publish the figures “as we reach key milestones”.

Its subscriber base has skyrocketed since it launched a crackdown on password sharing in May 2023, sending shares up more than 80 percent in 2024. But the stock got off to a rocky start in 2025.

Wall Street has been bracing for subscription growth to slow as the initiative’s initial momentum fades. But Netflix is ​​betting big on live events to attract new subscribers, debuting its weekly streams this month WWE Raw – Part of a 10-year deal with the wrestling entertainment group. Sarandos said WWE’s first week on Netflix drew about 5 million viewers.

Executives said the live events will help reach the audiences advertisers want. The advertising business got off to a rocky start after its launch in fall 2022 due to weakness in the industry.

However, Greg Peters, co-CEO, said advertising revenue doubled last year and he expects it to double again in 2025. “We are making solid progress” in advertising, he said. “You could say that 2025 is the year we move from crawling to walking.”



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