Netflix has reported a sharp increase in subscribers while announcing price hikes for some of its plans in the United States, Canada, Portugal, and Argentina.
The streaming giant revealed that it added nearly 19 million new subscribers during the holiday season, closing 2024 with over 300 million global subscribers.
Netflix said its standard and premium plans in the U.S. will increase by $2 per month, now costing $18 and $25, respectively. The ad-supported standard plan will see a $1 increase to $8 monthly.
“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the company explained in a letter to investors.
In the last quarter of 2024, Netflix recorded a profit of $1.87 billion, with revenue rising to $10.25 billion, a double-digit growth compared to the previous year.
Netflix shares surged by more than 14 percent in after-market trading, reaching $993 per share.
Company executives described 2024 as a record-breaking year, with 41 million new subscribers added globally. “We enter 2025 with strong momentum,” the company stated.
Netflix also highlighted its dominance in viewer engagement, reporting that paid members spend about two hours daily on its platform.
Netflix credited its success to a strong lineup of shows, including the second season of “Squid Game,” which remains the most-watched series in the platform’s history.
“Squid Game” has further solidified South Korea’s global cultural influence, alongside hits like the Oscar-winning film “Parasite.”
Netflix executives also highlighted their focus on expanding the platform’s advertising capabilities, live programming, and games.
In 2025, the company plans to release new seasons of popular series like “Wednesday” and “Stranger Things.” Sports fans in the U.S. can look forward to 52 weeks of WWE programming and the return of NFL games on Christmas Day.
Netflix reported that more than 55 percent of sign-ups in regions with ad-supported plans came from these lower-cost options, which grew nearly 30 percent compared to the previous quarter.
While Netflix maintains its leadership position in streaming, it faces competition from platforms like Disney+. Despite launching in 2019, Disney+ has struggled to achieve the same level of success, even with Marvel and Star Wars content.
Netflix’s forecast for 2025 includes revenue of $43.5-44.5 billion and an operating margin target of 29 percent.
Netflix shares have gained 80 percent in the past year, significantly outperforming both the S&P 500 and NASDAQ indices, cementing its position as the dominant player in the streaming industry.
