Netflix Surpasses 300 Million Subscribers with 18.9 Million Additions in Q4

Netflix achieved a remarkable milestone in the fourth quarter of 2024, surpassing 300 million subscribers. This significant growth was primarily fueled by the success of Squid Game season 2 and Netflix's strategic push into live sports programming. The company added an impressive 18.91 million new subscribers, bringing its paid membership total to 301.6 million. This marks a 15.9% year-on-year (YoY) increase. The previous record for subscriber gain was set during Q1 2020 when Netflix added 15 million subscribers due to the pandemic-driven demand.

Netflix Shifts Focus to Revenue and Engagement Metrics

Starting from the fourth quarter, Netflix announced it would no longer report its quarterly paid membership additions. The company explained that the impact of incremental memberships across its various pricing tiers varies across global markets. Instead, Netflix plans to focus on revenue and operating margin as its key financial indicators. Member engagement will now be considered the best metric for assessing member satisfaction.

Impressive Financial Growth in Q4 2024

In Q4 2024, Netflix saw revenue growth of 16% YoY, reaching $10.25 billion. Operating income also increased by 22.2% to $2.3 billion, and the operating margin surged by 22.2%. Net profit nearly doubled, reaching $1.87 billion compared to the same period last year. For the entire year, Netflix's revenue grew to $39 billion, with operating profit surpassing $10 billion for the first time. The company also added a record 41 million subscribers during the year.

Strong Performance in Asia-Pacific, Including India

The Asia-Pacific region, which includes India, played a crucial role in Netflix’s growth. The region added 4.94 million subscribers, bringing its total to 57.5 million. Revenue from Asia-Pacific grew by 25.9% YoY, reaching $1.2 billion, accounting for 11.8% of Netflix’s total revenue for Q4 2024. Though Netflix did not disclose specific subscriber numbers for India, the country remains one of the most significant markets for the company, particularly in terms of paid subscriber additions and revenue growth.

Squid Game Season 2 Drives Record Viewership

Netflix credited the second season of Squid Game for its record-breaking subscriber additions. The show became one of Netflix’s most-watched original series, with 165.7 million views. Additionally, the action-thriller Carry-On joined Netflix’s all-time Top 10 films list, accumulating 160.1 million views. Netflix defines views as the total hours watched divided by the movie's runtime. Moreover, a live boxing event featuring Jake Paul and Mike Tyson in November generated a massive number of signups, further boosting Netflix’s subscriber growth.

Live Sports Programming and Future Plans

Netflix’s recent push into live programming, particularly live sports, was highlighted as a potential game-changer for the platform. The live boxing match between Jake Paul and Mike Tyson proved to be an effective strategy in driving new sign-ups. While Netflix expects live programming to remain a small percentage of its overall viewership, it believes that event-driven content will add significant value to both its members and the business. Going forward, Netflix plans to expand its live programming strategy to include more special events rather than regular season sports.

Plans for 2025: New Seasons, Ad-Supported Plans, and More

Looking ahead to 2025, Netflix plans to release new seasons of its popular shows such as Squid Game, Wednesday, and Stranger Things. Additionally, the company intends to scale up its ad-supported subscription plans, which have already garnered 70 million users across 12 markets. In regions where ad-supported plans are available, Netflix reports that over 55% of sign-ups are from these plans, with membership growing by nearly 30% from the previous quarter.

Netflix’s Ad Platform and Expansion in 2025

Netflix launched its first-party ad tech platform in Canada in November and plans to roll it out to additional markets in 2025, beginning with the United States in April. The company aims to enhance its advertising capabilities with expanded targeting, measurement, and reporting features. Netflix views its ad-supported plans as a critical revenue stream for the future and intends to improve its offering to advertisers to accelerate growth in advertising revenue.

Emphasis on Live Events and Gaming

In addition to live sports, Netflix plans to invest more in gaming and live event programming. The company is focused on delivering unique, “can’t-miss” special events rather than regular sports programming. Netflix is also expanding its gaming portfolio, with titles ranging from immersive, narrative-based games to casual party games and popular franchises like Grand Theft Auto. Netflix will continue testing cloud gaming on television, expanding its offering in 2025.