Netflix adds 19 million subscribers surpassing 300 million total, hikes prices in US, shares jump 14%

Streaming giant Netflix on January 21 released its October-December quarter results, reporting that it added close to 19 million subscribers during the holiday period to surpass 300 million subs in total, AFP reported. It also announced a hike in prices for customers in some countries, including the United States.

The stock reacted positively, jumping by more than 14 per cent to $993 in after-market trade, the report added.

Netflix: Investment in Shows Paid Off

According to Netflix executives, steady investment in shows and films paid off for the streaming giant. Netflix ended 2024 with a strong lineup that included a second season of the global hit “Squid Game”. The dystopian Korean horror tale about a fictional, deadly game remains by far the most-watched Netflix TV series ever, as per AFP.

In Q4FY24, Netflix said it logged $1.87 billion profit and revenue of $10.25 billion, which grew double digits from the same period the previous year. “We enter 2025 with strong momentum, coming off a year with record net additions — 41 million — and having re-accelerated growth,” Netflix executives told investors in a letter.

They added that Netflix is in a “leadership position” when it comes to engagement, with about two hours daily per paid member. “Our business remains intensely competitive with many formidable competitors across traditional entertainment and big tech,” Netflix executives said.

Netflix Hikes Prices: Check Details Here

They added that the price hikes will be imposed in Argentina, Canada, Portugal and the US, as per the report.

“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 letter to investors added.

For the US, Netflix’s premium and standard memberships will cost $25 and $18 monthly, respectively, a hike of $2 each; while the standard ad-supported sub will be $8 per month, a $1 hike, as per the statement.

Netflix Will Increase Advertising, Live Programming

Executives said that they plan to include more advertising capabilities, live programming and game offerings.

“We have to continue to improve all aspects of Netflix — more series and films our members love, a great product experience, increased sophistication in our plans and pricing strategy including more advertising capabilities — and grow into new areas like live programming and games,” the letter said.

Netflix said its ad-supported plans accounted for more than 55 percent of signups in countries where they are offered, growing nearly 30 percent overall from the prior quarter.

Growing its ad business is a top priority for this year, according to Netflix.

In a bid to boost sputtering growth, the company launched an ad-subsidized offering in late 2023 around the same time as a crackdown on sharing passwords.

Forecast Ahead for Netflix

Looking ahead, Netflix forecasts 2025 revenue between $43.5-44.5 billion and is targeting a healthy 29 percent operating margin.

The streaming service highlighted upcoming content, including new seasons of hit shows “Wednesday,” and “Stranger Things“. The United States will see 52 weeks of WWE professional wrestling programming and the return of NFL games on Christmas Day.

In the US, the company has begun to offer some users combined packages with its one-time rivals, making itself available through joint subscriptions with Peacock and Apple TV.

Netflix is seen as reigning supreme over the video content market, with Disney still struggling after a launch in November of 2019 that featured a slew of new content from its blockbuster Marvel and Star Wars universes.

Netflix shares have gained 80 percent over the past year, significantly outperforming both the S&P 500 and NASDAQ indices.