After the record-breaking Jake Paul vs Mike Tyson match and two NFL games, Netflix revenue spiked up during the holiday season despite the usual downward trend due to Christmas films.
Having added almost 19 million new subscribers during the months of October to December, it trumped analysts' expectations, following its new orientation towards live programming. Just before ending 2024, it had already surpassed more than 300 million global subscribers, with the record 41 million addition this year.
Experts told AP News that live programming has become the most influential strategy for Netflix. Though the company initially launched live events as a boost for ad revenue, it has eventually succeeded in gaining and retaining subscribers. Mike Proulx, a research analyst at Forrester Research, averred that "FOMO" (the fear of missing out) can be an important driver in garnering fan loyalty. Live programming gives Netflix an edge over other competitors and keeps the audience glued to their screens.
Netflix to Raise Prices
Netflix's bottom line was equally impressive during this after-holiday period.
Net income stood at $1.9 billion, which is nearly double 2023, whereas revenue is up 16% year over year to $10.2 billion. With such momentum, Netflix will raise subscription prices in the US and Canada by $1 to $2, and expects minimal pushback.
From this, ABC News reported that the company is forecasting a 13% revenue increase to $44 billion for 2025.
Along with the rise in prices, Netflix is expanding its ad model. The ad-supported tier launched at the end of 2022 already represents more than half of new subscribers. Live events are an important part of this growth, enabling Netflix to sell high-value ad slots during major broadcasts like NFL games and the Women's World Cup. Co-CEO Greg Peters described this shift as moving from "crawl to walk" in terms of advertising.
Though live events are gradually becoming a hot topic, the company still concentrates on its prime content: series and movies. Stranger Things will be back with a third season in 2025, while Squid Game will premiere a second installment.
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