Netflix has surpassed expectations with its latest financial results, adding a record-breaking 18.9 million subscribers in the fourth quarter of 2024. This unprecedented growth has propelled the streaming giant past the 300 million global subscriber milestone, cementing its position as the undisputed leader in the streaming industry.
The company's performance was driven by a combination of compelling content and strategic initiatives. Netflix's fourth-quarter programming slate, which included the highly anticipated second season of "Squid Game" and live sporting events, surpassed internal expectations. The Jake Paul vs. Mike Tyson boxing match became the moststreamed sporting event in the platform's history (at 108 million live viewers according to the platform), while two NFL games on Christmas Day delivered record-breaking viewership.
Netflix's financial results were equally impressive, with revenue growing 16% year-over-year to $10.25 billion in the fourth quarter. The company's operating income rose to $2.3 billion, marking a 22.2% increase. For the full year 2024, Netflix reported revenue of $39 billion and an operating profit exceeding $10 billion for the first time in its history.
Riding this wave of success, Netflix has announced price increases across several markets, including the United States, Canada, Portugal, and Argentina. In the U.S., the standard ad-free plan will rise from $15.49 to $17.99 per month, while the premium tier will increase to $24.99. The company justified these adjustments in its letter to shareholders, stating, "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."
Looking ahead, Netflix projects 2025 revenue between $43.5 billion and $44.5 billion, targeting a 29% operating margin. The company plans to focus on improving its core business with more series and films, enhancing its product experience, and scaling up its advertising business.
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