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Friday, Dec 26, 2025
Outside the box.
Netflix Reports Record Subscriber Growth and Announces Price Increases
Streaming giant Netflix adds nearly 19 million subscribers in a quarter and plans price hikes in several countries.
Netflix Inc. reported substantial gains in its fourth-quarter earnings, driven by an increase of nearly 19 million subscribers during the holiday season, as announced on Tuesday.
The period from October to December was highlighted by the streaming of notable events, such as a boxing match with YouTube star Jake Paul and former heavyweight champion Mike Tyson, and two NFL games on Christmas Day, contributing to the subscriber growth.
This expansion brings Netflix's global subscriber count to over 300 million, marking an increase of 41 million compared to the previous year.
The fourth-quarter financial results showed robust performance, with the company earning $1.9 billion, or $4.27 per share, almost twice the amount from the same quarter of the previous year.
Revenue also saw a 16% rise to $10.2 billion.
In a move to further strengthen its financial standing, Netflix announced upcoming price increases for its subscriptions in the United States, Canada, Portugal, and Argentina, though the exact new prices were not specified.
Traditionally, Netflix has raised prices by $1 to $2 per month.
Despite the planned hikes, Netflix remains optimistic about maintaining its customer base, as indicated by its slightly increased revenue forecast for the year, targeting a mid-range of $44 billion, representing a 13% growth over the last year.
Following the earnings report, Netflix's shares experienced a 3% rise in extended trading, reflecting investor confidence.
This follows an impressive 83% rise in net worth over the prior year, adding nearly $200 billion in shareholder value despite facing fierce competition in the streaming industry.
Additionally, Netflix continues to explore advertising as a revenue stream, following the introduction of a lower-priced service tier with commercials in late 2022. Live programming, such as its recent high-profile events, includes advertisements visible across all subscription tiers.
While Netflix has not disclosed specific figures for advertising revenue, the company suggests it will remain modest for the foreseeable future.
Meanwhile, Netflix's primary focus continues to center on scripted series and movies, with new seasons of hits like 'Stranger Things', 'Squid Game', and 'You' scheduled for release this year.
The period from October to December was highlighted by the streaming of notable events, such as a boxing match with YouTube star Jake Paul and former heavyweight champion Mike Tyson, and two NFL games on Christmas Day, contributing to the subscriber growth.
This expansion brings Netflix's global subscriber count to over 300 million, marking an increase of 41 million compared to the previous year.
The fourth-quarter financial results showed robust performance, with the company earning $1.9 billion, or $4.27 per share, almost twice the amount from the same quarter of the previous year.
Revenue also saw a 16% rise to $10.2 billion.
In a move to further strengthen its financial standing, Netflix announced upcoming price increases for its subscriptions in the United States, Canada, Portugal, and Argentina, though the exact new prices were not specified.
Traditionally, Netflix has raised prices by $1 to $2 per month.
Despite the planned hikes, Netflix remains optimistic about maintaining its customer base, as indicated by its slightly increased revenue forecast for the year, targeting a mid-range of $44 billion, representing a 13% growth over the last year.
Following the earnings report, Netflix's shares experienced a 3% rise in extended trading, reflecting investor confidence.
This follows an impressive 83% rise in net worth over the prior year, adding nearly $200 billion in shareholder value despite facing fierce competition in the streaming industry.
Additionally, Netflix continues to explore advertising as a revenue stream, following the introduction of a lower-priced service tier with commercials in late 2022. Live programming, such as its recent high-profile events, includes advertisements visible across all subscription tiers.
While Netflix has not disclosed specific figures for advertising revenue, the company suggests it will remain modest for the foreseeable future.
Meanwhile, Netflix's primary focus continues to center on scripted series and movies, with new seasons of hits like 'Stranger Things', 'Squid Game', and 'You' scheduled for release this year.
