Netflix added 18.9 million subscribers in its holiday quarter, beating Wall Street forecasts as live sporting events and the return of its popular South Korean series “Squid Game” attracted record numbers of new subscribers, the company said Tuesday. .
The streaming giant said that as it continues to invest in programming that its members value, it will increase service prices for most plans in the US, Canada, Portugal and Argentina. In the US, the price of the basic service with ads will increase by $1 per month to $7.99, an increase of 14%, while the premium package will cost $24.99, an increase of 9%.
Netflix said its fourth-quarter programming slate exceeded its internal expectations, with the Jake Paul vs. Mike Tyson boxing match becoming the most-streamed sporting event and two National Football League games on Christmas Day in the league. Presenting the two most streamed competitions. History.
The service also benefited from the second season of its dystopian thriller “Squid Game,” which the company said is on track to become one of its most-watched original series. According to researcher Antenna, the company has the lowest cancellation rate among subscription streaming services, with a churn rate of 1.8% in December.
This quarter will also be the last time Netflix reports subscriber growth, as the company emphasizes other performance metrics, including revenue and profit – a change that analysts have attributed to slowing subscriber growth.
The company reported earnings of $4.27 per share, beating Wall Street’s forecast of $4.20 per share, according to the average estimate of 34 analysts. Annual operating income exceeded $10 billion for the first time in company history.
Revenue for the quarter rose 16% to $10.2 billion from the same period a year earlier, compared with Wall Street’s estimate of $10.1 billion, according to LSEG.
“We enter 2025 with strong momentum,” Netflix said in its note to investors. He said it added a record 41 million customers in 2024 and accelerated growth again.
The company revised its guidance to $44.5 billion in revenue in 2025 from $43.5 billion, an increase of half a billion dollars from the prior forecast. The updated guidance reflects improved business fundamentals, the company said.
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