Netflix gains 19 million new members, reaching 300 million total, raises US rates, and shares rise 14%.

Thanks to Squid Game and "strong" programming, Netflix gains 19 million new members between October and December 2024, achieving 300 million subscribers overall. Additionally, the streaming behemoth revealed a pricing increase in the US. The results of the quarter caused shares to soar 14% to $993.

The streaming behemoth Netflix announced its October-December quarter results on January 21. According to AFP, the company recruited around 19 million new members over the Christmas season, bringing its total number of customers to over 300 million. Additionally, it declared price increases for consumers in a few nations, including the US.

According to the article, the stock had a strong reaction, rising more than 14% to $993 in after-market trading.

Netflix: Return on Investment in Series
Netflix executives claim that the streaming behemoth has reaped the rewards of consistent investments in television series and motion pictures. Netflix had a solid roster toward the end of 2024, which featured a second season of the popular show "Squid Game." According to AFP, the dystopian Korean horror story about a made-up, lethal game continues to be the most-watched Netflix TV series ever.

Netflix reported a $1.87 billion profit and $10.25 billion in sales for the fourth quarter of FY24, a double-digit increase over the same period the year before. In a letter to investors, Netflix management stated, "We enter 2025 with strong momentum, coming off a year with record net additions — 41 million — and having re-accelerated growth."

With almost two hours per day per premium member, they claimed, Netflix is in a "leadership position" when it comes to engagement. According to Netflix management, "our business remains extremely competitive with many formidable competitors across traditional entertainment and big tech."

Check out the details about Netflix's price hike here.
According to the report, they also stated that price increases will be implemented in Argentina, Canada, Portugal, and the US.

The letter to investors also stated, "We will periodically ask our members to pay a little more so that we can re-invest to further improve Netflix as we continue to invest in programming and deliver more value for our members."

According to the announcement, Netflix's standard and premium memberships in the US will cost $18 and $25 per month, respectively, an increase of $2 each; the regular ad-supported subscription will cost $8 per month, an increase of $1.

Netflix Will Boost Live Programming and Advertising
According to executives, they intend to expand their game options, live programming, and advertising capabilities.

The statement stated, "We must keep improving every part of Netflix — more shows and movies that our members enjoy, a fantastic product experience, more sophistication in our plans and pricing strategy, including more advertising capabilities — and expand into new areas like live programming and games."

According to Netflix, its ad-supported plans grew by about 30% from the previous quarter and accounted for over 55% of new members in the countries where they are available.

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.

Netflix's Future Prospects
Netflix is aiming for a healthy 29 percent operating margin and projects sales of $43.5–44.5 billion in 2025.

Upcoming material, like as new seasons of popular shows "Stranger Things" and "Wednesday," was touted by the streaming service. 52 weeks of WWE professional wrestling programming will air in the US, and NFL games will resume on Christmas Day.

In order 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 with a November 2019 debut that included a ton of new content from its popular Marvel and Star Wars universes, Netflix is said to be dominating the video content industry.

Over the past year, Netflix's stock has increased by 80%, greatly outpacing the NASDAQ and S&P 500 indices.