Netflix added 18.9 million subscribers in its holiday quarter, beating Wall Street forecasts, with live sporting events and the return of its popular South Korean series “Squid Game” attracting a record number of new customers, the company said. on Tuesday.
The streaming giant said that as it continues to invest in programming that its members value, it will raise prices for the service for most plans in the US, Canada, Portugal and Argentina.
In the US, the basic ad-supported service will increase by $1 per month to $7.99, a 14% price increase, while the premium package will cost $24.99, a 9% increase.
Shares of Netflix rose about 10% in extended trading, boosting its stock market value by almost $40 billion.
Netflix said its programming schedule for the fourth quarter exceeded its internal expectations, with the Jake Paul vs. Mike Tyson boxing match becoming the most-streamed sports event and the two National Football League games on Christmas Day offered two of the most televised contests in the league. history.
The service also benefited from the second season of its dystopian thriller Squid Game, which the company said is on track to become one of its most-watched original series.
The company has the lowest cancellation rate among streaming subscription services, with a 1.8% hold rate in December, according to researcher Antenna.
This quarter will also mark the last time Netflix reports subscriber additions, as the company highlights other performance metrics including revenue and profit — a shift analysts attribute to slowing subscriber growth.
The company reported earnings per share of $4.27, beating Wall Street’s estimate of $4.20 per share, according to an average of forecasts from 34 analysts.
Annual operating income exceeded $10 billion for the first time in the company’s history.
Revenue rose 16% year-over-year to $10.2 billion, compared with Wall Street estimates of $10.1 billion for the quarter, according to LSEG.
“We enter 2025 with strong momentum,” Netflix said in its note to investors, saying it added a record 41 million subscribers in 2024 and re-accelerated growth.
The company revised its guidance, forecasting revenue of $43.5 billion to $44.5 billion in 2025, an increase of half a billion dollars over the previous forecast.
The updated guidance reflects improved business fundamentals, the company said.
#Netflix #hike #prices #adding #record #million #quarterly #subscribers
Image Source : nypost.com