On January 21, Netflix announced that it had added 18.9 million subscribers in its holiday quarter, exceeding expectations. The boost was attributed to the popularity of live sporting events and the return of the hit South Korean series "Squid Game."
To cover increasing programming costs, Netflix will raise prices for most plans in the U.S., Canada, Portugal, and Argentina. In the U.S., the basic ad-supported plan will increase by $1 to $7.99 per month, a 14% hike, while the premium plan will cost $24.99, up by 9%.
Investors reacted positively, causing Netflix's stock to surge by 13% in after-hours trading, adding nearly $50 billion to its market value. Over the past year, Netflix shares have risen by more than 77%, surpassing the S&P 500's increase of 24%.
The streaming service highlighted strong fourth-quarter performance with record-breaking viewership numbers for events like the Jake Paul vs. Mike Tyson boxing match and National Football League games on Christmas Day. The success was buoyed by the release of the second season of "Squid Game."
Netflix aims to uphold its leading position in the streaming market by diversifying its content offerings. The company's resilient performance was noted despite challenges like COVID-19 and industry strikes, showcasing returning favorites like "Wednesday" and "Stranger Things."
Looking ahead, Netflix will focus on delivering live events and original content, including acquiring the 2027 and 2031 FIFA Women's World Cup rights. The company anticipates growth in ad revenue and plans to emphasize metrics beyond subscriber numbers in future reports.
In its financial update, Netflix reported exceeding analyst expectations with per-share earnings of $4.27. The company predicts continued growth, revising its 2025 revenue guidance upwards to $43.5 billion to $44.5 billion. Additionally, Netflix's board approved a $15 billion increase in share repurchases, totaling $17.1 billion for buyback authorization.