Netflix announced on Tuesday that it added nearly 19 million subscribers during the holiday season, closing 2024 with a subscriber base exceeding 300 million.
In the final quarter of the year, the streaming giant reported a profit of $1.87 billion on revenue of $10.25 billion, marking double-digit growth compared to the same period in 2023. Following the announcement, Netflix shares surged over 10% in after-hours trading, reaching $960.60.
“We enter 2025 with strong momentum, coming off a record year of 41 million net subscriber additions and re-accelerated growth,” Netflix executives stated in a letter to shareholders. They emphasized the platform’s leadership in engagement, with paid members spending an average of two hours daily, and highlighted its position as a revenue and profit leader in a rapidly expanding market.
The company acknowledged the competitive nature of the streaming landscape, which includes both traditional entertainment and tech giants. To maintain its edge, Netflix plans to enhance its offerings with more compelling series and films, refine its pricing and advertising strategies, and expand into live programming and gaming.
‘Squid Game’ and Ad-Supported Growth
Netflix ended 2024 with a strong content slate, including the highly anticipated second season of Squid Game. The dystopian Korean series, which remains the platform’s most-watched show, continues to solidify South Korea’s cultural influence alongside works like the Oscar-winning Parasite and global K-pop phenomenon BTS.
The company reported that ad-supported subscription plans now account for over 55% of new sign-ups in regions where they are available, representing nearly 30% growth from the previous quarter. Netflix views its advertising business as a major growth driver for 2025. The ad-subsidized tier was introduced in late 2023 alongside measures to limit password sharing, which had previously slowed growth.
2025 Projections and Competitive Strategy
Netflix expects 2025 revenue to range between $43.5 and $44.5 billion, with a projected 29% operating margin. Upcoming content highlights include new seasons of Squid Game, Wednesday, and Stranger Things, as well as professional wrestling and NFL games during the holiday season. The platform has also started bundling subscriptions with rivals like Peacock and Apple TV in the United States.
Despite challenges from competitors such as Disney+, Netflix remains the dominant force in streaming. Disney+, which launched in 2019 with high-profile franchises like Marvel and Star Wars, continues to face hurdles. Over the past year, Netflix shares have surged by 80%, significantly outperforming major indices like the S&P 500 and NASDAQ.
