Netflix announced on Tuesday, January 21, that it added nearly 19 million new subscribers during the 2024 holiday season, bringing its global total to over 300 million subscribers.
The streaming giant also reported strong financial results for the fourth quarter, with profits reaching $1.87 billion on revenues of $10.25 billion, reflecting double-digit growth from the same period the previous year.
As a result, Netflix’s shares surged by more than 10 per cent to $960.60 in after-market trading.
“We enter 2025 with strong momentum, coming off a year with record net additions—41 million—and having re-accelerated growth,” said Netflix executives in a letter to shareholders.
They further stated that Netflix holds a “leadership position” in terms of user engagement, with members spending an average of two hours daily on the platform, as well as in revenue and profit.
This comes at a time when the streaming market continues to expand.
Despite its success, Netflix acknowledged the intense competition it faces from both traditional entertainment and big tech players.
The company emphasised the need for continuous improvement in content, product experience, and pricing strategies. This includes adding more series and films, enhancing its advertising capabilities, and exploring new areas like live programming and gaming.
“Squid Game” Continues to Lead
Netflix wrapped up 2024 with a strong content slate, including the much-anticipated second season of the global hit “Squid Game.” The dystopian Korean thriller, which remains Netflix’s most-watched TV series, continues to make waves in the entertainment world.
“Squid Game” has played a significant role in solidifying South Korea’s position as a global cultural force, alongside “Parasite” and K-pop group BTS.
The company also highlighted that its ad-supported subscription plans now account for more than 55% of new signups in markets where they are available, with a nearly 30% growth from the previous quarter.
Netflix is making the expansion of its ad business a key priority in 2025, which includes rolling out ad-supported plans and cracking down on password sharing.
For 2025, Netflix forecasts revenue between $43.5 billion and $44.5 billion, with an operating margin target of 29%.
The streaming service is gearing up for another year of high-profile content releases, including new seasons of “Squid Game,” “Wednesday,” and “Stranger Things.” Additionally, Netflix will offer 52 weeks of WWE programming in the United States and return NFL games on Christmas Day.
In a bid to attract more subscribers, Netflix has also begun offering combined subscription packages in the US, partnering with its former rivals, such as Peacock and Apple TV.
These partnerships aim to expand Netflix’s reach and bolster its competitive edge against rivals like Disney+, which has struggled since its 2019 launch.
Netflix’s success is evident, with its shares rising 80% in the past year, significantly outperforming major stock indices like the S&P 500 and NASDAQ.
The company remains a dominant player in the streaming market, continuing to build on its momentum into 2025 and beyond.
