Netflix has announced a significant increase in its subscriber base, adding nearly 19 million users during the 2024 holiday season, bringing its total subscribers to over 300 million.
In a statement on Tuesday, the streaming giant attributed this growth to consistent investments in shows and films while revealing plans to increase subscription prices in Argentina, Canada, Portugal, and the United States.
“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 said in a letter to investors.
In the United States, the cost of a premium membership will rise by $2 to $25 per month, while a standard plan will now cost $18. The ad-supported tier has also been increased to $8, reflecting a $1 hike.
For the final quarter of 2024, Netflix reported a profit of $1.87 billion on revenue of $10.25 billion, marking a double-digit increase compared to the same period the previous year. Its shares surged by over 14% in after-hours trading, reaching $993.
“We enter 2025 with strong momentum, coming off a year with record net additions — 41 million — and having re-accelerated growth,” Netflix executives said.
The company highlighted its leadership in user engagement, with paid members spending an average of two hours daily on the platform. However, Netflix acknowledged stiff competition from traditional entertainment and major tech players, stressing the need to enhance its offerings.
Strong Content and Advertising Growth
Netflix ended 2024 with a robust lineup, including the much-anticipated second season of the Korean global hit Squid Game. The series, which remains the most-watched show on Netflix, has solidified South Korea’s cultural dominance alongside global phenomena like Parasite and BTS.
The platform also revealed that its ad-supported plans accounted for over 55% of sign-ups in markets where they are available, with overall growth reaching nearly 30% from the previous quarter. Expanding its ad business remains a priority for 2025, as the company continues to see results from its crackdown on password sharing and the introduction of ad-subsidized plans.
Future Projections and Partnerships
Looking ahead, Netflix projects its 2025 revenue to range between $43.5 billion and $44.5 billion, targeting an operating margin of 29%. Upcoming content includes new seasons of fan favorites like Wednesday and Stranger Things, as well as live sports programming such as WWE matches and NFL games.
The company is also exploring bundled subscription options in the United States, partnering with platforms like Peacock and Apple TV to attract more users.
Netflix remains the dominant player in the video streaming market, significantly outperforming competitors like Disney+, which continues to struggle despite a high-profile launch in 2019 featuring Marvel and Star Wars content.
Over the past year, Netflix shares have gained 80%, outpacing the S&P 500 and NASDAQ indices.
