Netflix Soars with Nearly 19 Million New Subscribers, Raises Prices Amid Strong Growth
Netflix added nearly 19 million subscribers during the holiday season, finishing 2024 with a total of more than 300 million subscribers, the company announced on Tuesday. Executives attributed this growth to continued investment in original content and programming, but also revealed that price hikes are coming for customers in Argentina, Canada, Portugal, and the United States.
“As we keep investing in content and delivering more value to our members, we occasionally need to adjust pricing to reinvest in improving Netflix,” the company said in a letter to investors.
In the United States, Netflix will raise prices for premium and standard memberships by $2 per month now priced at $25 and $18, respectively. The standard ad-supported tier will increase by $1, bringing it to $8 per month.
The streaming giant reported a profit of $1.87 billion on revenue of $10.25 billion in the final quarter of 2024, marking a double-digit revenue growth from the previous year. This solid financial performance caused Netflix shares to jump more than 14% in after-market trading, reaching a new high of $993 per share.
“We enter 2025 with strong momentum, following a year of record net additions 41 million and accelerated growth,” Netflix executives said. The company highlighted its leadership in engagement, with subscribers averaging nearly two hours per day of viewing.
Despite intense competition from both traditional entertainment and tech giants, Netflix emphasized its ongoing need to improve in all areas from expanding its library with more shows and films that members love to refining its pricing strategy and bolstering advertising capabilities. Netflix is also eyeing new avenues, including live programming and games, to stay ahead of competitors.
In 2024, Netflix ended the year with a strong lineup, including the highly anticipated second season of Squid Game, the dystopian Korean thriller that remains the platform’s most-watched TV series. The show’s success helped cement South Korea’s position as a global cultural force, alongside the Academy Award-winning Parasite and K-pop sensation BTS.
The company also revealed that its ad-supported plans accounted for more than 55% of new sign-ups in markets where they are available, reflecting a nearly 30% growth from the previous quarter. Expanding its ad business is a key priority for 2025, especially after launching its ad-supported tier in late 2023, along with a crackdown on password sharing.
Looking ahead, Netflix projects 2025 revenue to fall between $43.5 billion and $44.5 billion, with an operating margin target of 29%. The company plans to continue delivering new seasons of popular shows like Wednesday and Stranger Things, as well as 52 weeks of WWE wrestling programming and NFL games on Christmas Day in the U.S.
In a strategic move to diversify its offerings, Netflix has also begun bundling subscriptions with former competitors like Peacock and Apple TV, further solidifying its position in the streaming market.
Despite facing pressure from rivals like Disney+, which has struggled to match Netflix’s dominance since launching in 2019, Netflix’s shares have surged 80% in the past year, outperforming both the S&P 500 and NASDAQ indices.
As Netflix moves into 2025, it continues to reinforce its position as the leading force in the streaming industry, balancing content investment, strategic pricing, and expansion into new areas like live programming and advertising to maintain its momentum.
