Netflix has reported a record-breaking 19 million new subscribers in the fourth quarter of 2024, surpassing previous highs set during the COVID-19 pandemic.
The milestone, driven in part by major live events like the Jake Paul vs. Mike Tyson boxing match and the company's first-ever NFL games, brings Netflix’s total subscriber base to 302 million, according to The Hollywood Reporter.
Despite this impressive growth, Netflix has announced it will no longer provide quarterly subscriber updates, instead shifting focus to revenue and profitability metrics.
Going forward, subscriber numbers will only be reported upon reaching major milestones.
Strong Financial Performance and Future Projections
Netflix posted $10.2 billion in revenue for Q4, with an operating income of $2.3 billion and a 22.2% operating margin.
Looking ahead to Q1 2025, the company anticipates revenue of $10.4 billion and an operating income of $2.9 billion.
Additionally, Netflix raised its revenue guidance for 2025 by $500 million, projecting total revenue of $43.5 billion to $44.5 billion. The company also announced its first price hikes in two years, including increases for its ad-supported tier, which is a growing focus of its business strategy.
Live Events and Expanding Content Offerings
The quarter’s success was bolstered by live programming, with the Jake Paul vs. Mike Tyson fight setting streaming records and Netflix's Christmas Day NFL games attracting broadcast-level viewership.
The company also began airing weekly live episodes of WWE Raw.
However, co-CEO Greg Peters downplayed the impact of live events on subscriber growth, stating, “We’ve seen broad strength across content categories across all regions... no single title really drives a majority of our acquisition or engagement.”
Beyond live content, Netflix continues to invest heavily in its library, with plans to spend $18 billion on content in 2025, up from $17 billion the previous year. Key releases like the second season of Squid Game have also contributed to subscriber growth.
Strategic Shifts and Long-Term Vision
Netflix's leadership remains committed to evolving its business model. The company plans to continue releasing exclusive content first on its platform but will experiment with theatrical releases, such as the upcoming Narnia film, which will have a special two-week IMAX run before hitting the streaming service.
The company is also expanding into gaming, with plans to introduce narrative games based on Netflix IP and cloud-based party games, which it sees as a modern evolution of family game nights.
Commitment to the Entertainment Industry
Despite recent industry challenges, including the devastating Los Angeles wildfires, co-CEO Ted Sarandos assured stakeholders that Netflix’s production schedule and financial plans remain unaffected. He emphasized the company’s focus on maintaining job stability within the entertainment sector.
Netflix also announced a $15 billion stock buyback program, further reinforcing investor confidence in the streaming giant’s long-term growth strategy.
