Netflix Gains 18.9 Million Subscribers, Surpasses 300 Million Users Worldwide, Declares Subscription Fee Increases
Netflix's Q4 2024 Results Boost Stock Price and Subscriber Growth
Netflix has announced its Q4 2024 results, which have led to a significant increase in its stock price and a surge in subscriber growth. The premium tier of Netflix will see a $2 increase, rising to $24.99 per month, while the standard ad-free tier will cost $17.99, an increase of $2.50.
The company added 18.9 million new global users in Q4 2024, bringing its total sub count to 301.63 million. This robust increase reflects continued international expansion and strong user engagement. In the U.S. and Canada, paid memberships for Netflix increased by 4.8 million to 89.3 million.
Netflix's stock price has seen a sharp rise, with shares up about 50% in the first half of 2025 and 33% year-to-date as of August 2025. The company reported 16% revenue growth and over 100% EPS growth in Q4, exceeding investor expectations and fueling optimism about future growth potential.
One of the key drivers of future growth is Netflix's ad-supported subscription tier. The company aims to roughly double its advertising revenue in 2025, boosting overall revenue and profitability. This growth is supported by the launch of its proprietary Ads Suite platform and expansion into live programming and sports, diversifying revenue streams.
In Q4 2024, over 55% of sign-ups for Netflix's ad-supported tier were in its ads countries. Membership on Netflix's ad-supported plan grew nearly 30% quarter over quarter in Q4 2024. The cost of the ad-supported tier will increase from $6.99 to $7.99 per month.
Financially, Netflix's operating margins have improved, reaching around 31.7% in Q4 2024 and 34.1% by Q2 2025. The company has also initiated a large stock buyback program (about $15 billion) to enhance shareholder value, signaling confidence by management.
Operating income for Netflix rose 52% year over year in Q4 2024, and for the full year 2024, it exceeded $10 billion for the first time in its history. Netflix's revenue for the full year 2024 grew by 16% to $39 billion. The company's operating margin expanded six points to 27% for the full year 2024.
In summary, Netflix's Q4 2024 results have reinforced its strategy of balancing premium subscription growth with scalable advertising revenue across international markets. The company's stock price has surged, subscriber growth hit record levels, and the ad-supported tier is expanding rapidly. However, competition and rising content costs remain risks to watch.
[1] Netflix Q4 2024 Earnings Report [2] Netflix's Q4 2024 Earnings Call Transcript [3] Netflix to Double Advertising Revenue in 2025 [4] Netflix Q4 2024 Earnings Press Release [5] Netflix's Stock Price Surges After Q4 Earnings Report
- The surge in Netflix's stock price can be attributed to the impressive content that the company offers, attracting more subscribers and boosting investor confidence in the technology-driven media business.
- With the increasing revenue from its ad-supported subscription tier, Netflix is poised to become a significant player in the advertising industry, making it an attractive investment opportunity for those interested in finance and investing.
- The launch of Netflix's Ads Suite platform will not only cater to the growing demand for ad-supported content but also open new avenues for revenue generation, particularly in the business sector.
- The robust growth in Netflix's subscriber base across the globe, coupled with the increase in the premium and ad-supported tiers' prices, highlights the company's commitment to delivering high-quality video content that resonates with its audience.
