Netflix reaffirmed its dominance in the streaming industry on Tuesday, reporting record subscriber gains and announcing price increases across key markets, Reuters reports.
These developments sent its stock soaring 13% in after-hours trading, adding nearly $50 billion to its market value.
The company added 18.9 million subscribers in the fourth quarter of 2024, bringing its global subscriber base to nearly 302 million. Netflix credited the surge to its diverse programming slate, which included the second season of the popular dystopian series Squid Game and high-profile live events such as the Jake Paul-Mike Tyson boxing match and NFL games featuring a halftime performance by Beyoncé.
In response to the growing demand, Netflix raised subscription prices in the United States, Canada, Portugal, and Argentina. In the U.S., the ad-supported plan increased from $6.99 to $7.99 per month, while the premium plan rose 9% to $24.99.
Netflix reported per-share earnings of $4.27, beating Wall Street’s forecast of $4.20. Revenue for the quarter rose 16% year-over-year to $10.2 billion, slightly exceeding analysts’ expectations. Annual operating income surpassed $10 billion for the first time in Netflix’s history.
Netflix emphasized its focus on content quality and live programming as key drivers of subscriber growth. The company’s ad-supported tier has proven particularly successful, accounting for 55% of new sign-ups in markets where it is available. Netflix Co-CEO Greg Peters noted that ad revenue doubled year-over-year in 2024 and is expected to double again in 2025.
Looking ahead, Netflix plans to expand its live-event offerings, including WWE’s Monday Night Raw and future FIFA Women’s World Cup broadcasts. These events attract advertisers seeking to engage real-time audiences.
Netflix revised its 2025 revenue forecast upward to a range of $43.5 billion to $44.5 billion, reflecting improved business fundamentals. The company also authorized an additional $15 billion for stock repurchases, raising its total buyback authorization to $17.1 billion.
As competition in the streaming sector intensifies, Netflix continues to lead with a robust mix of original series, live events, and strategic pricing adjustments. Analysts like Paolo Pescatore of PP Foresight noted:
“Netflix reaffirms its leadership position and is absolutely running away in the streaming market.”
