2024 was nothing short of spectacular for Netflix. The company added a staggering 41 million new paid memberships throughout the year, with the fourth quarter alone bringing in 19 million new subscribers – the largest quarterly gain in Netflix’s history.
This surge brought their total paid memberships to a whopping 302 million globally, a clear indication of Netflix’s expanding reach and appeal.
But it’s not just about subscriber numbers. Netflix’s financial performance was equally impressive. The company saw a 16% year-over-year increase in revenue, reaching $39 billion for the full year 2024. What’s more, their operating income exceeded $10 billion for the first time ever, with the operating margin expanding to a healthy 27%.
Content is King, and Netflix Wears the Crown
At the heart of Netflix’s success lies its content strategy. The company’s investment in diverse, high-quality programming continues to pay dividends. Take “Squid Game” for instance. The second season of this global phenomenon is on track to become one of Netflix’s most-watched original series seasons ever.
But it’s not just scripted content that’s drawing viewers. The streaming platform made significant strides in live programming as well.
The Jake Paul vs. Mike Tyson boxing match became the most-streamed sporting event in history, while on Christmas Day, Netflix delivered the two most-streamed NFL games ever. These successes demonstrate Netflix’s ability to captivate audiences across various genres and formats.
Advertising
2024 also saw the company making significant inroads in advertising. The company’s ad-supported tier has gained considerable traction, accounting for over 55% of sign-ups in countries where it’s available. This not only provides a lower-cost option for price-sensitive consumers but also opens up a new revenue stream for Netflix.
To further capitalize on this opportunity, Netflix is rolling out its first-party ad tech platform. Starting with Canada in November 2024 and expanding to the US in April 2025, this move signals its commitment to enhancing its advertising capabilities.
Growth across all markets
One of the most impressive aspects of Netflix’s 2024 performance was its balanced growth across all regions. From the United States and Canada to Europe, Latin America, and the Asia-Pacific region, Netflix saw substantial increases in paid memberships across the board. This global appeal underscores Netflix’s ability to create and curate content that resonates with diverse audiences worldwide.
More Netflix price increases
In a strategic move to support its continued growth and content investments, the company announced price adjustments for most plans in the United States, Canada, Portugal, and Argentina. This decision, while potentially controversial, is rooted in the company’s commitment to delivering more value to its members.
The rationale behind these price increases is multifaceted. Firstly, the additional revenue will allow Netflix to invest more heavily in high-quality content production and acquisition, ensuring a steady stream of compelling shows and movies for its subscribers.
Secondly, it will support the development and improvement of Netflix’s streaming technology, enhancing the viewing experience for users. Lastly, it will help fund the expansion of new initiatives such as live programming and gaming, diversifying the streaming platform’s offerings and strengthening its competitive position in the entertainment industry.
While price hikes are never popular among consumers, Netflix’s track record of delivering value through its vast and diverse content library, coupled with its plans for future innovations, suggests that the company is confident in its ability to retain and grow its subscriber base despite the increases.
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