Netflix added 18.9 million subscribers in the holiday quarter, significantly beating Wall Street expectations, as live sports events and the return of the popular Korean series “Squid Game” brought in a record number of new customers. The company reported on Tuesday.
The streaming giant announced that it will increase the price of its service on most plans in the U.S., Canada, Portugal, and Argentina as it continues to invest in the programming that its members value.
In the US, the basic service with ads will increase by $1 per month to $7.99 (up 14%), and the premium package will cost $24.99 (up 9%).
Netflix stock rose about 10% in extended trading, adding about $40 billion to its value.
Netflix said its fourth-quarter programming schedule exceeded internal expectations, with the Jake Paul-Mike Tyson boxing match the most-streamed sporting event and two National Football League games on Christmas Day It was announced that they were the two most streamed games in the world. history.
The service is also benefiting from the second season of dystopian thriller Squid Game, which the company says is on track to be one of its most-watched original series. .
According to researcher Antenna, the company has the lowest churn rate among subscription streaming services, with a 1.8% churn rate in December.
This quarter will be the last time Netflix will report subscriber growth, as the company focuses on other performance metrics such as revenue and profits, but analysts believe the change could slow subscriber growth. It is analyzed that there are
The company reported earnings of $4.27 per share, according to the average estimate of 34 analysts, beating Wall Street's estimate of $4.20 per share.
Annual operating profit exceeded $10 billion for the first time in the company's history.
LSEG said its revenue for the quarter was $10.2 billion, up 16% from a year earlier, compared to Wall Street's expectations of $10.1 billion.
“We enter 2025 with strong momentum,” Netflix said in a note to investors, adding that growth will reaccelerate with a record 41 million subscribers in 2024.
The company revised its guidance to expect 2025 sales of $43.5 billion to $44.5 billion, an increase of $500 million from its previous forecast.
The company said the latest guidance reflects improved business fundamentals.
