Netflix records record subscriber growth in 2024, driven by flagship content and live events. During the 4th quarter, the SVOD juggernaut sold 19 million new packages worldwide. Downside, the group decides to increase its prices in the USA, but also in Canada, Argentina and Portugal. No announcement for the French market.
Netflix ends the year 2024 on a triumphant note with a record subscriber gain, consolidating its position as the world leader in streaming. The platform recorded 19 million net new subscriptions in the fourth quarter, bringing its total to 302 million members worldwide. This figure marks the largest quarterly increase in its history, far exceeding the 13 million recorded in the fourth quarter of 2023.
According to him, this success is based on a varied content offering and flagship productions. The SVOD giant notes this, my season 2 of Squid Game has captivated a global audience and is shaping up to be one of Netflix’s most-watched original seasons. The movie Carry-Onstarring Jason Bateman and Taron Egerton, has joined the ranking of the ten most popular films on the platform.
Netflix also marked a turning point in the field of live sports. The Jake Paul vs. Mike Tyson became the most-watched streaming sporting event in history, and NFL games broadcast on Christmas Day broke records, attracting millions of viewers.
Price increase in the USA, Canada, Argentina and Portugal
Beyond content, Netflix has focused on a visibly effective marketing and pricing strategy, combining a diversification of its offers and an increase in the strength of its formula with advertising. These efforts are resulting in a 16% increase in annual revenue, reaching a record fourth quarter revenue of more than $10 billion. This dynamic also made it possible to improve the profitability of the company. The operating margin increased by six points over the year, to reach 27%, and earnings per share doubled compared to 2023.
-But this is not enough for the group which, alongside the announcement of its annual results, has decided to increase its prices, particularly in the USA. For the first time, the Standard subscription with advertising sees its price increase, by 1 dollar, to settle at 8.99 dollars per month. The Standard subscription increases by $2.50 to $17.99 per month, up from $15.49. Finally, the Premium offer also sees an increase of 2 dollars, bringing its price to 24.99 dollars monthly. A price increase is also expected in Canada, Argentina and Portugal.
For the moment, France is not concerned but this should not take long. The latest price increase to date in France took place in October 2023. If the Standard formula with advertising at €5.99/month and Standard at €13.49 were spared, the Essential offer was increased by 2€, at 10.99€/month before disappearing from the offers. For its part, the Premium subscription has undergone the same increase to €19.99/month instead of €17.99/month.
Ambitious prospects for 2025
Building on this momentum, Netflix is approaching 2025 with optimism. The platform expects revenue growth of between $43.5 billion and $44.5 billion and an operating margin of 29%. Long-awaited returns, like those of Stranger Things et Wednesdayshould further strengthen its appeal to the public. Netflix also plans to continue its expansion into live content and gaming, while maintaining a focused approach on single events rather than regular sports rights. With an average engagement of around two hours per day per subscription, Netflix dominates the streaming market more than ever.
This article was reprinted on the Univers FreeBox website
