Netflix gained a record number of subscribers in the fourth quarter of 2024, further solidifying its dominance in the streaming market and capping the company’s biggest year yet.
The company added 19 million paid subscribers, bringing its total base to 302 million customers globally in the fourth quarter, topping even the gains it made during the COVID-19 streaming surge.
Hits such as the second season of Korean drama “Squid Game” and a live boxing match between YouTuber turned fighter Jake Paul and former heavyweight champion Mike Tyson, along with other content, helped drive viewership and subscriptions.
Netflix reported $10.2 billion in quarterly revenue, up 16% from a year ago. Net income was nearly $1.9 billion, compared with $938 million for the same period in 2023. The Los Gatos, Calif., streamer’s results beat analysts’ estimates of $10.1 billion in sales and $1.8 billion in profit, according to FactSet.
Netflix said its priorities for this year are to improve its core business with series and films and grow its ad-supported business, while continuing to develop its newer initiatives, such as live programming and video games. Netflix increased its 2025 revenue forecast by about $500 million, raising its projections to a range of $43.5 billion to $45.5 billion.
“We maintain a leadership position in engagement, revenue and profit,” Netflix said in a letter to shareholders on Tuesday.
The company’s stock price has risen significantly over the last year, closing at $869.68 on Tuesday, up nearly 80% from 12 months ago. The shares gained about 14% in after-hours trading.
“Netflix cleared an important hurdle preying on investors’ minds: Can the company keep its margins healthy against incoming pressures from a strong U.S. dollar and rising inflation?” said Thomas Monteiro, senior analyst at Investing.com. “This should shape the 2025 financial environment for the company.”
Since October 2022, Netflix has been increasing its cheaper advertising subscriptions and bringing in more live-event programming to draw advertisers. Analysts say they believe this will be a key area of growth for the streamer in the future.
“In the long run, advertising offers Netflix one of its biggest growth opportunities, helping them attract new members who previously considered Netflix too expensive,” said Albie Amankona, an analyst at Third Bridge, in a statement.
The Tyson vs. Paul match drew 65 million live concurrent streams, putting a strain on the company’s technical capabilities and resulting in glitches. Last month, Netflix streamed two NFL football games on Christmas Day with an average of more than 30 million global viewers. In January, Netflix became the exclusive home to “WWE Raw” in the U.S. and other countries.
But Netflix cautioned that the company still intends to be selective when bidding for live sports rights, which can be hugely expensive.
Co-Chief Executive Ted Sarandos said that, although Netflix was pleased with the viewership of its NFL games, “it doesn’t change the underlying economics,” calling full-season big league sports “extremely challenging.”
“We are going to be mindful of the bottom line,” Sarandos said in an earnings presentation.
The company has increased its revenue by cracking down on password sharing, offering options to people who are using their families’ and friends’ accounts but not living in the same household to pay an additional fee.
Netflix on Tuesday said it is raising prices for most plans in the U.S., Canada, Portugal and Argentina. In the U.S., the cost of a standard plan with ads is increasing by $1 to $7.99 a month. The ad-free standard plan is going up $2.50 to $17.99 a month and premium plans will increase $2 to $24.99 a month.
Like all streaming services, Netflix will also need to continue to serve up compelling content to attract audiences. Despite the devastating wildfires that have swept through parts of the Los Angeles area, Sarandos said he doesn’t expect meaningful delays to Netflix’s productions.
“The company’s reliance on cyclical success from flagship shows like ‘Stranger Things’ or ‘Squid Game’ makes it difficult to forecast strong versus weak years,” Amankona said. “Unlike Disney, which benefits from long-standing franchises, Netflix’s limited investment in repeatable IP adds further volatility.”
The company’s slate of upcoming content includes new seasons of the Addams Family series “Wednesday” and a third season of “Squid Game” coming out later this year.
One of its upcoming film big bets is “Narnia,” directed by Greta Gerwig, which will exclusively premiere on Imax for two weeks before it’s released on Netflix in 2026.
