Netflix shares jump as the number of subscribers increases

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Netflix added 19 million subscribers in the fourth quarter as viewers flocked to stream new episodes. Squid game and live sporting events including a highly hyped boxing match between Mike Tyson and Jake Paul.

The increase means Netflix had 301mn total subscribers by the end of 2024, up 15% from a year earlier and higher than Wall Street’s expectation of 293mn. The shares were up more than 13 percent in afternoon trading.

The streaming pioneer made a big push into live sports events in the fourth quarter, with the boxing match between Tyson and Paul attracting 65mn streams worldwide. It aired two National Football League games on Christmas Day, each reaching 24 million viewers. Netflix has also started the second season. Squid gameIt reached a record-breaking 68 million views in its first week.

“We enter 2025 at a strong pace, with record year-over-year net (subscriber) additions and re-accelerated growth,” the company said in a letter to shareholders.

While the business is “intensely competitive,” he added, it doesn’t have the “trouble” to handle the decline of television networks that its rivals in the traditional Hollywood studios are dealing with.

Revenue was $10.2bn in the fourth quarter, and the company raised its revenue guidance by 14% to $500mn in 2024. Earnings per share doubled to $4.27 from $2.11 a year ago. $2 billion more, up 52 percent.

It’s the last time Netflix will report quarterly subscribers, something investors have been watching closely for years. But he said he would continue to release the numbers “as we pass key milestones.”

Since the campaign against password sharing started in May 2023, the number of subscribers has increased.

Wall Street has been bracing for a slowdown in subscription growth as initial momentum slows. But Netflix is betting big on live streaming to draw new subscribers, and this month it launched weekly streams of WWE Raw — part of a 10-year deal with the wrestling entertainment group.

Executives said the live events will help advertisers reach the audiences they want. The ad business has had a good start since its launch in late 2022 due to weakness in the sector.

“Our top priority in 2025 is to improve our offering to advertisers so that we can significantly grow our ad revenue,” he said in a letter to shareholders.