Netflix reported a record 18.9 million new subscribers in Q4, bringing its global total to nearly 302 million, solidifying its dominance in the streaming market. The company capitalized on this growth by raising prices in the U.S., Canada, Portugal, and Argentina. The ad-supported service now costs $7.99, up from $6.99, and the premium package is priced at $24.99, a 9% increase.
The subscriber spike was driven by a mix of live events, popular returning series, and standout moments like Beyoncé’s halftime show during NFL games. Netflix’s deepening investment in live events, such as the Jake Paul vs. Mike Tyson boxing match and NFL games, attracted millions of viewers. The company’s fourth-quarter programming surpassed expectations, with hit shows like Squid Game and Stranger Things boosting engagement.
The ad-supported tier now accounts for 55% of new sign-ups, contributing to a sharp rise in ad revenue, which Netflix expects to double again this year, with projections of $2 billion in ad revenue. Additionally, Netflix secured broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031, part of its strategy to expand live-event content over traditional sports packages.
Netflix posted earnings of $4.27 per share, exceeding analysts’ expectations. Annual revenue rose 16% to $10.2 billion, and operating income surpassed $10 billion for the first time. The company revised its 2025 revenue forecast to between $43.5 billion and $44.5 billion, signaling strong business fundamentals. Netflix also announced an additional $15 billion for share repurchases, bringing the total buyback to $17.1 billion.
Also read: Biden Bids Farewell, Urges Democrats to Hold onto Hope
