Netflix adds 18.9m subscribers thanks to live sports and ‘Squid Game’

Key topics.Historic subscriber gain: Added 18.9M users in Q4, surpassing 300M globally.Live sports & hits: Jake Paul fight, 'Squid Game' drove massive sign-ups.Revenue growth: 2024 revenue projected at $44.5B, up 14% year-over-year..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Lucas Shaw___STEADY_PAYWALL___.Netflix Inc. closed 2024 with its biggest quarterly subscriber gain in history, buoyed by its first major live sporting events and the return of Squid Game..The company added 18.9 million customers in the fourth quarter, according to a shareholder letter Tuesday. That was more than double what Wall Street expected and brought global subscribers at Netflix to more than 300 million. The company's previous best was 15 million in the first quarter of 2020 — numbers driven by the onset of the coronavirus pandemic. .This is the final time Netflix will report quarterly subscriber numbers. The company's stock has historically risen and fallen based on customer additions, but management is trying to get investors to prioritize financial metrics like sales and profit. The company reported revenue grew 16% to $10.2 billion for the quarter, the biggest gain since late 2021, and said sales will grow faster than predicted in 2025..Read more: 🔒 FT's Big Read: How Netflix won the streaming wars.Netflix will boost sales by increasing prices in its home market. The company is raising prices in the US, Canada, Portugal and Argentina, with the most popular US plan going to $17.99 a month, an increase of $2.50. Netflix is also increasing the cost of its cheaper advertising-supported plan..For the year, the company projects revenue of as much as $44.5 billion, a gain of 14% from the year just ended, with an operating margin of 29%..Shares of the streaming leader rose as much as 15% to $997.85 in extended trading after the results were announced. That would mark a new all-time high if it holds in regular trading on Wednesday..Netflix will stop reporting subscriber figures following a surge in new customers from its crackdown on password sharing. Analysts and investors had expected the benefits from that effort to wear off by now, but Netflix just posted its single best year ever in terms of subscriber additions, netting 41 million new customers..The company credited a mix of programming, including the hit movie Carry-On and the second season of Squid Game, its most popular series ever. The company said no program accounted for a majority of its additions..Yet a boxing match between Jake Paul and Mike Tyson delivered a record number of sign-ups for one day, according to the research firm Antenna, dwarfing even Netflix's first National Football League games. The second of those games featured a halftime performance by Beyoncé. ."Our newly established live programming slate has already delivered some must-watch moments," the company wrote in its letter. "Although our live programming will likely be a small percentage of our total view hours and content expense, we think the eventized nature will result in outsized value to both our members and our business.".Live programming is vital as Netflix builds out its advertising business. The company shows advertising during football and wrestling to all of its members — not just those on the less-expensive, advertising-supported tier..The streaming giant got off to a slow start in advertising and has said it won't produce material financial benefits until 2026. But it's starting to make progress. The majority of new customers opt for advertising in the 12 markets where it is available, and the company said it would have enough scale to satisfy advertisers by the end of this year..Management has eschewed buying the rights to most major sporting events, arguing they are too expensive. Yet it did license the rights to the FIFA Women's World Cup and is seen as a potential partner for the Ultimate Fighting Championship.."We're constantly trying to broaden our programming," co-Chief Executive Officer Ted Sarandos said during an interview with analysts after the results were announced. Netflix has had less success with video games, another new initiative..This quarter, Netflix is forecasting revenue of $10.4 billion and earnings of $5.58 a share, both below the average of Wall Street estimates. Netflix has rebounded from a brief downtown a couple of years ago to post record growth while many of its peers in Hollywood have cut costs and struggled to grow. .Read also:.🔒 Netflix extends streaming dominance with 8M new subscribers and higher earnings🔒 Netflix scores big as streaming giant dives into sports for stock surgeNetflix vs. DStv subscription: Price increase comparison.© 2025 Bloomberg L.P.

Netflix adds 18.9m subscribers thanks to live sports and ‘Squid Game’

Related Stories

New Fed chair Warsh faces inflation and Trump pressure

US trial exposes social media 'quick buck' short-selling tactics

Breakthroughs for batteries could soon make them much better

Webinar: Accretiv doubles down on US industrial property