On Tuesday, streaming giant Netflix reported a $1.87 billion profit in the last quarter of 2024 on $10.25 billion in revenue, a double-digit increase over the same period the previous year.
Netflix announced that it had added around 19 million new members over the holiday season, bringing its total number of subscribers to over 300 million at the end of the previous year. Netflix’s stock surged over 10 percent to $960.60 in post-market trading.
“We enter 2025 with strong momentum, coming off a year with record net additions – 41 million- and having re-accelerated growth,” Netflix executives said in a letter to shareholders.
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According to them, Netflix is in a “leadership position” in terms of income and profit in a market that is still growing, as well as engagement, with each premium member spending roughly two hours a day.
“Our business remains intensely competitive with many formidable competitors across traditional entertainment and big tech,” Netflix executives said.
“We have to continue to improve all aspects of Netflix – more series and films our members love, a great product experience, increased sophistication in our plans and pricing strategy including more advertising capabilities – and grow into new areas like live programming and games.”
Squid Game boosts Netflix’s growth
Netflix had a solid roster at the end of the previous year, which included a second season of the popular show “Squid Game.”
The most-watched Netflix TV series to date is the dystopian Korean horror story about a fictional, lethal game. Along with the Oscar-winning movie “Parasite” and K-pop superstars BTS, “Squid Game,” an extremely violent story that explores issues of injustice and division, is regarded as one of the most important works in establishing South Korea as a global cultural force.
According to the streamer, over 55 percent of new users in the regions where its ad-supported plans are available signed up, an increase of about 30 percent from the previous quarter.
According to Netflix, expanding its ad business is a high focus for this year. Around the same time as a crackdown on password sharing, the company launched an ad-subsidized option in late 2023 in an attempt to boost flagging growth.
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Netflix forecasts 2025 revenue between $43.5-44.5 billion
Netflix is aiming for a healthy 29 percent operating margin and projects sales of $43.5–44.5 billion in 2025.
The streaming service showcased new seasons of popular series like “Stranger Things,” “Squid Game,” and “Wednesday.”
To make itself available through combination subscriptions with Peacock and Apple TV, the business has started to offer some subscribers combined packages with its former rivals in the US.
With Disney+ still having trouble following its November 2019 debut, which included a tonne of new content from its popular Marvel and Star Wars universes, Netflix is seen to be dominating the video content market.
Over the past year, Netflix’s stock has increased by 80 percent, greatly outpacing the NASDAQ and S&P 500 indices.