Streaming giant crosses 300m subscribers with 19m additions 

Netflix said it added a record 18.91m paid global subscribers in the fourth quarter as its recent foray into live sports and the debut of Squid Game 2 helped raise the total to 301.6m.

As previously announced, starting in April’s earnings call for Q1, the platform will no longer provide quarterly subscriber updates as it focuses on financials, although it will offer milestone updates. That said, co-chief exec Ted Sarandos said they will release its biannual engagement report in conjunction with Q2 and Q4 earnings. Shares climbed by more than 14% in after hours trading.

Revenue crossed $10bn (£8.1bn) for the first time in the company’s history reaching $10.2bn (£8.3bn), beating Wall Street estimates of $10.1bn. Revenue grew by 16% year-on-year, and operating margin reached 22.2% and earnings per share of $4.27 beat $4.21 estimates.

Prices are going up. The Standard With Ads plan in the US will climb from $6.99 to $7.99 a month; standard (ad-free) is increasing from $15.59 to $17.99; and premium is increasing from $22.99 to $24.99.

The company name-checked last quarter’s live sports content including the Mike Tyson-Jake Paul boxing bout and the two NFL American Football games on December 25 and the company expects to ramp up in this area.

Paul v Tyson Netflix

Mike Tyson and Jake Paul

Netflix does not break out advertising revenues, however co-chief Greg Peters said that side of the business was experiencing “significant growth” since it launched in November 2022. He said the ad-supported tier accounted for more than 55% sign-ups across all countries where it is offered, with engagement roughly on par with ad-free plans.

Advertising revenue in 2024 doubled year-on-year and is expected to do the same in 2025. The company’s proprietary “ad stack” tech platform, which trialled in Canada last year, will roll out into the US in April and the other 11 countries where the advertising tier is offered by the end of 2025.

Addressing production in the wake of the LA County wildfires, Sarandos said there was “no meaningful” delay to planned productions, while there was “very meaningful disruption in people’s lives”. He added, “It’s really important we try not to delay anything and make sure these jobs stay safe.”

Netflix is projecting 2025 revenue of $43.5bn-$44.5bn, representing 12%-14% year-on-year growth. The company’s forecast is approximately $500m higher than its prior range, due to “improved business fundamentals and the expected carryover benefit of our stronger-than-forecasted Q4’24 performance, net of headwinds from the strengthening of the US dollar over the past few months”.

For Q1 2025 Netflix said it expects revenue growth of 11%, “modestly below our full year guidance due to the timing of price changes and the seasonality of our ads business”.

2024 delivered a record 41m net subscriber additions and a 16% increase in revenue. “Our business remains intensely competitive with many formidable competitors across traditional entertainment and big tech,” the company said in its letter to shareholders. We’re fortunate that we don’t have distractions like managing declining linear networks and, with our focus and continued investment, we have good and improving product/market fit around the world.”

  • A version of this story first appeared on our sister publication Screen