Netflix’s stock surged 13% on Tuesday after the company reported a record-breaking 18.9 million subscribers added in its fourth quarter, bringing its total global subscriber base to nearly 302 million customers.
The streaming giant raised prices in the US, Canada, Portugal, and Argentina, with its ad-supported service now costing $7.99 a month, up from $6.99. The premium package will also increase by 9% to $24.99.
Investors hailed Netflix’s leadership position, citing its diversified programming slate compared to rivals. The company’s live-streamed events, such as the heavyweight boxing match between Jake Paul and Mike Tyson, drew tens of millions of viewers.
Netflix’s focus on quality content appears to be driving users to streaming services. The company exceeded expectations for its fourth-quarter advertising revenue, with ad-supported sign-ups accounting for 55% of new subscribers in countries where it is available.
However, Netflix will no longer report subscriber additions as a key metric, shifting its focus to revenue and profit. Analysts attribute this change to slowing subscriber growth. Despite this, the company reported improved business fundamentals, revised its guidance to $43.5 billion to $44.5 billion for 2025, and authorized an additional $15 billion to repurchase shares.
This marks a significant milestone in Netflix’s history, with annual operating income exceeding $10 billion for the first time. The company’s emphasis on live events and advertising is expected to continue driving growth, with ad revenue predicted to reach $2 billion this year.
Source: https://www.reuters.com/technology/netflix-added-record-19-million-subscribers-holiday-quarter-2025-01-21