Netflix reported a record-breaking 18.91 million new subscribers in the fourth quarter of 2024, far exceeding analysts’ expectations. The streaming giant’s subscriber base now stands at 301.63 million globally, marking a significant 15.9% year-over-year increase.
This exceeds the 9.18 million paid subscriber additions analysts had anticipated for the period from October to December, and it comes in well ahead of the 13.12 million subscribers Netflix added in the same quarter in 2023. For comparison, Netflix saw a more modest 5.1 million new subscribers in Q3 of 2024, bringing its total to 282.72 million. That still represented strong year-over-year growth of 14%.
In a letter to shareholders, Netflix celebrated its Q4 performance, highlighting its strong content lineup as a key driver of the subscriber boost. Among the highlights were the success of Squid Game Season 2, which is on track to become one of Netflix’s most-watched original series seasons; the release of Carry-On, which entered Netflix’s all-time Top 10 films list; and the landmark viewership of the Jake Paul vs. Mike Tyson boxing match, which became the most-streamed sporting event in the platform’s history. Additionally, Netflix noted that on Christmas Day, it broadcast the two most-streamed NFL games ever.
Regional Growth Highlights
Breaking down the subscriber gains by region, Netflix saw the largest growth in its U.S. and Canada markets, where it added 4.82 million new subscribers. The company also saw strong performances in Europe, the Middle East, and Africa (EMEA), where it gained 5 million subscribers, as well as in Latin America with 4.15 million new subscribers. In the Asia-Pacific region, Netflix’s subscriber base grew by 4.94 million.
However, it’s important to note that the fourth quarter of 2024 marked the final time Netflix will release subscriber numbers regularly. The company announced in April 2024 that it will stop providing quarterly updates on subscriber growth, instead revealing only “major subscriber milestones” as they occur.
Financial Results
Netflix’s financial performance also exceeded expectations. Analysts had forecast earnings of $4.20 per share on revenue of $10.11 billion, according to consensus data provided by LSEG. The streaming giant reported diluted earnings per share of $4.27 on revenue of $10.2 billion. Operating income for Q4 came in at $2.3 billion, while free cash flow stood at $1.4 billion.
The company also indicated that a price hike would soon take effect, as it looks to capitalize on its growing subscriber base. Netflix forecast revenue for 2025 to fall between $43.5 billion and $44.5 billion, marking a $500 million increase over its previous forecast, even accounting for the strengthening of the U.S. dollar. The company also anticipates an operating margin of 29%, up one percentage point from its previous forecast.
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2025 Priorities and Content Slate
Looking ahead to 2025, Netflix outlined its key priorities, which include improving its core business by expanding its slate of beloved series and films, enhancing the product experience, and continuing to grow its advertising business. The company also plans to further develop newer initiatives, such as live programming and gaming, while sustaining healthy growth across its global operations.
In the coming year, Netflix will release the final seasons of Stranger Things and Squid Game, as well as the second season of Wednesday. These highly anticipated releases are expected to draw significant viewership and keep the momentum going into 2025.
During a video presentation for investors later on Tuesday, Netflix co-CEO Ted Sarandos addressed the ongoing wildfires in Los Angeles, which have impacted production schedules in the region. Sarandos assured investors that the fires would not cause “meaningful” disruption to Netflix’s content pipeline or spending, though the company has shifted its focus to supporting staff and talent affected by the fires.
Engagement and Video Game Initiatives
In an effort to increase transparency, Netflix will begin releasing a biannual engagement report, which will rank viewership for its titles. The first report, covering the second half of 2024, is set to be released in February, with future reports scheduled to coincide with the company’s quarterly earnings.
Netflix is also continuing to refine its strategy in the rapidly growing video game business. Co-CEO Greg Peters shared that the company is focusing on narrative-driven games based on Netflix’s original intellectual properties, such as the recently launched Squid Game: Unleashed. The company is also expanding into “party and couch co-op” games that can be streamed directly to users’ TVs from the cloud.
Peters explained that the goal is to create family-friendly gaming experiences that evolve traditional game nights, offering a new form of interactive entertainment. The company is committed to offering a safe environment for children with no ads or in-app purchases, integrated directly into Netflix subscriptions. Additionally, Netflix plans to introduce more recognizable mainstream titles, including licensed games like Grand Theft Auto (GTA), to attract a broader audience to its gaming platform.
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The Road Ahead
With its impressive subscriber growth, robust financial performance, and expanding content and gaming offerings, Netflix appears poised for continued success in 2025. However, the company faces increasing competition in the streaming space, and its ability to maintain this level of growth will depend on its continued investment in high-quality content and its ability to adapt to an ever-evolving media landscape.
