Netflix ended 2024 on a high note, signing up 18.9m new subscribers in the fourth quarter. With this increase, the video streaming giant passed the 300m subscribers mark. This performance, twice as good as analysts' expectations, also surpasses the previous record set in the first quarter of 2020 - at the height of the pandemic - when 15m additional subscribers joined the platform.
In financial terms, the results are just as impressive: Netflix generated sales of $10.25bn in the last quarter, an increase of 16% on the previous year. This performance is due in particular to the launch of season 2 of the global phenomenon “Squid Game”, which has racked up 165m views since its release on 26 December. The film “Carry-On”, one of the platform's new releases, also made it into Netflix's "top 10 most popular films".
By starting to broadcast live sporting events, the group has captured a new audience. The fight between Jake Paul and Mike Tyson has become the most streamed boxing match in history, according to Netflix. Similarly, NFL (American football) games broadcast on Christmas Day attracted more than 24m viewers. "Our goal is not to compete with sports broadcasters, but to offer unmissable special events," the company said on Tuesday. It also announced that it has acquired the rights to broadcast the Women's World Cup in 2027 and 2031.
Ambitious targets
In a letter to its shareholders, Netflix set out its priorities for 2025:
- Strengthen its core business: more member-favourite series and films, an enriched user experience and growth in advertising;
- Explore new initiatives: live events and games;
- Maintain sustained growth: expected sales of between $43.5bn and $44.5bn (up $0.5bn on the previous forecast) and an operating margin of 29%.
To support this growth, Netflix will be raising its prices in a number of countries, notably in the United States, where the subscription with advertising will rise from $6.99 to $7.99, while the premium package will increase to $24.99 per month. This increase, which will also affect Canada, Portugal and Argentina, is justified by Netflix as necessary to reinvest in improving their service. Luxembourg is not yet affected.
New reporting figures
Another change: from the first quarter of 2025, Netflix will stop systematically publishing its number of paid subscriptions and its average revenue per subscription (ARM). Instead, the group will publish "a semi-annual report on engagement, which will cover 99% of viewing hours on the streaming platform." The aim? To demonstrate the value of Netflix as a service, not only in terms of subscribers, but also through the intensity with which they use the platform.
This decision is in line with the expansion of the ad-supported subscription offer, which was launched a year ago and has proved remarkably successful. Launched a year ago, the formula accounts for 55% of new subscriptions and has seen quarterly growth of 30% since its launch. By focusing on user engagement, Netflix hopes to convince advertisers of the value of their advertising investment, while the development of advertising revenues is one of the company's strategic priorities for the coming year.
Read the original French-language version of this news report /