Netflix has shattered expectations with its biggest-ever subscriber jump, adding a staggering 19 million new viewers in the final quarter of 2024. This surge catapults the streaming giant’s global subscriber base to a whopping 302 million, firmly cementing its position at the top of the streaming food chain.
But with great success comes a catch for consumers: Netflix announced it’s raising prices across most of its subscription tiers in the US and Canada.
The catalyst for this explosive growth? An unlikely combination of boxing and football. The Mike Tyson vs. Jake Paul boxing match in November drew an unprecedented 108 million viewers worldwide, claiming the title of most-streamed sporting event in history. Following this knockout success, Netflix’s Christmas Day NFL games averaged 30 million global viewers, setting another streaming record.
It wasn’t just sports that packed a punch. “Squid Game” season two premiered to a jaw-dropping 68 million views in its first week, while the addition of WWE “Raw” live broadcasts has further diversified Netflix’s content arsenal.
As a result of this banner quarter, Netflix’s revenue surged 16% to over $10 billion, with operating income skyrocketing 52% year-over-year to $2.3 billion. The company’s success was met with enthusiasm on Wall Street, with shares soaring 13% following the announcement.
However, this success comes at a cost to subscribers. The standard ad-free monthly membership will jump from $15.49 to $17.99, while the ad-supported tier will increase by $1 to $7.99. The premium 4K tier will see a $2 hike to $24.99.Netflix justified the price increase as necessary to “re-invest to further improve” its service, joining a trend of streaming platforms raising prices to boost profitability.
As Netflix basks in its triumph, it’s clear that the streaming wars are far from over. With its eyes set on more live events and sports, Netflix seems poised to continue its reign as the undisputed heavyweight champion of streaming.