As Netflix expands its content offerings, it will raise prices in several countries, including Argentina, Canada, Portugal, and the United States. In a letter to investors, the company stated that price increases are necessary to sustain its investment in programming and provide more value to its members. In the U.S., the premium and standard plans will see a $2 increase, bringing the prices to $25 and $18 per month, respectively. The ad-supported standard plan will also see a $1 increase, now priced at $8.
For the final quarter of 2024, Netflix reported a profit of $1.87 billion on revenue of $10.25 billion, reflecting double-digit growth compared to the same period last year. The company’s shares surged by over 14%, topping $993 in after-market trading.
Looking ahead, Netflix enters 2025 with strong momentum, following a record net addition of 41 million subscribers and re-accelerated growth. Executives highlighted Netflix’s leadership in viewer engagement, with subscribers averaging two hours of content consumption daily. Despite intense competition from both traditional entertainment and tech giants, Netflix remains focused on continually enhancing its content, user experience, pricing strategy, and advertising capabilities.
2024 saw the return of major hits like “Squid Game,” which continues to be Netflix’s most-watched series to date. The dystopian thriller, widely regarded as a cultural milestone, has solidified South Korea’s position as a global cultural force. Netflix also emphasized the success of its ad-supported plans, which accounted for over 55% of new signups in markets where they are available, showing nearly 30% growth from the previous quarter.
With a focus on expanding its advertising business, Netflix launched its ad-subsidized tier in late 2023, coinciding with its crackdown on password sharing. Looking forward, Netflix projects 2025 revenue between $43.5 billion and $44.5 billion, targeting an operating margin of 29%.
Upcoming content includes new seasons of popular shows like “Wednesday” and “Stranger Things,” along with exclusive WWE and NFL programming in the U.S. Netflix is also experimenting with bundled subscriptions alongside partners like Peacock and Apple TV.
Despite the rise of competitors like Disney+, Netflix continues to dominate the streaming market. Over the past year, Netflix’s stock has surged by 80%, outperforming both the S&P 500 and NASDAQ indices.
