Netflix adds record 19 million subscribers in holiday quarter, Reuters
By Dawn Chmielewski
(Reuters) – Netflix (NASDAQ: ) added 18.9 million subscribers in the holiday quarter, as Wall Street forecasts, live sporting events and the return of the popular South Korean series “Squid Game” drew new subscribers, the company reported on Tuesday.
As the streamer continues to invest in programs that value its members, it said the price of its service will increase for most plans in the US, Canada, Portugal and Argentina. In the US, the basic service with ads will cost $1 per month to $7.99, a 14% price increase, and the premium package will cost $24.99, a 9% increase.
Shares of Netflix rose nearly 10 percent in extended trading, boosting its stock market value to $40 billion.
Netflix said its fourth-quarter programming slate exceeded internal expectations, with the Jake Paul vs. Mike Tyson boxing match the most-streamed sporting event and the two National Football League games on Christmas Day delivering two of the league’s most-streamed contests. History.
The service also benefited from the second season of dystopian thriller “Squid Game,” which the company said is on track to become one of its most-watched original series. According to researcher Antenna, the company has the lowest cancellation rate among subscription services, with a 1.8% decline in December.
This quarter marks the last time Netflix will report subscriber growth, with the company emphasizing other performance metrics including revenue and profit — a change analysts say is slowing subscriber growth.
The company reported earnings of $4.27, beating Wall Street’s consensus estimate of $4.20, based on the average estimate of 34 analysts. Annual operating income exceeded $10 billion for the first time in the company’s history.
Revenue rose 16 percent from the same period a year ago, to $10.2 billion, compared with Wall Street estimates of $10.1 billion for the quarter, according to LSEG.
“We will enter 2025 with strong momentum,” Netflix said in a note to investors, adding a record 41 million subscribers in 2024 and re-accelerating growth.
The company revised up its guidance, estimating revenue of $43.5 billion to $44.5 billion in 2025, up half a billion dollars from its previous forecast. The updated guidance reflects improved business fundamentals, the company said.
