Netflix ended 2024 on a high note, reporting 19 million new subscribers in the holiday season and surpassing 300 million global users.
The streaming giant announced price hikes in major markets, including the U.S., Canada, and Argentina, to sustain its ambitious investment in original content.
Premium plans in the U.S. will rise by $2 to $25 per month, with standard plans increasing to $18. Meanwhile, the ad-supported tier saw a modest $1 bump, now priced at $8 monthly. “We are committed to enhancing value for our members while reinvesting in exceptional programming,” Netflix said in a letter to investors.
The company reported a record $1.87 billion profit on $10.25 billion in revenue for Q4 2024, marking double-digit growth from the previous year. Netflix shares surged 14%, trading at $993 in after-market activity and outperforming the S&P 500 and NASDAQ with an 80% gain over the past year.
Ad Revenue, Hit Shows Drive Growth
Ad-supported plans accounted for 55% of sign-ups in supported regions, a 30% quarterly growth. Netflix sees this segment as a top priority for 2025, alongside plans to tackle password sharing and expand live programming and gaming offerings.
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“Netflix holds a leadership position in engagement, with users averaging two hours daily per paid account,” the company noted. Popular shows like *Squid Game*—the most-watched Netflix series ever—helped solidify its dominance. The hit Korean drama’s second season drew global attention, alongside other titles like *Wednesday* and *Stranger Things*.
A Competitive Edge
While Disney+ grapples with slower growth since its 2019 launch, Netflix continues to diversify. Upcoming ventures include WWE programming, NFL games, and bundled subscriptions with rivals like Apple TV and Peacock. Netflix forecasts 2025 revenue between $43.5 billion and $44.5 billion, with a 29% operating margin target.
“We enter 2025 with strong momentum, coming off a year with record net additions and re-accelerated growth,” executives said, emphasizing their focus on improving offerings and bolstering advertising capabilities.
