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Netflix (NFLX+1.37%) reported strong earnings in 2024, thanks to 19 million new paid memberships during the fourth quarter – its largest increase ever. The streaming giant finished 2024 with with 302 million memberships.
The company also announced price hikes across most plans in the U.S., Canada, Portugal, and Argentina. Netflix’s standard ad-free plan will now cost $17.99 a month, up from $15.49. Meanwhile, the ad-support plan will increase from $6.99 to $7.99 per month.
These price hikes were already factored into Netflix’s 2025 forecast it provided in Oct. 2024. Additionally, the company said it will no longer report paid memberships and average revenue per member starting in the first quarter of 2025.
Revenue climbed 16% year-over-year, driven by hits like Squid Game season 2 and Carry-On, which joined Netflix’s top 10 films. Shares of Netflix jumped by over 13% in after-hours trading.
The fourth quarter spike in viewership was also bolstered by major events, including the Jake Paul vs. Mike Tyson fight, which became Netflix’s “most-streamed sporting event ever.”
Christmas day brought the most-streamed National Football League (NFL) games in Netflix history, pushing operating income up by 25%. Beyoncé’s “Beyoncé Bowl” also helped drive 50 million viewers.
The company expects revenue to reach between $43.5 billion and $44.5 billion, up $500 million from earlier projections. Additionally, it says it’s focusing on strengthening its core business by offering more popular content, improving the user experience, and expanding it ads business. The company also plans to get into new areas, such as live programming and gaming.
“We’re optimistic heading into the new year,” Netflix said, emphasizing its focus on creating content that continues to resonate with audiences and that will “pierce the cultural zeitgeist.”
In 2025, Netflix is gearing up for the return of two major hits, Stranger Things and Wednesday.