Netflix Shares Surge 12% Following Price Hike and Record Subscriber Growth

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Netflix
Netflix

Shares of Netflix saw a significant jump of 12% in early trading on Wednesday after the streaming giant unveiled a price increase affecting all of its U.S. subscribers.

The standard monthly subscription without advertisements will rise from $15.49 to $17.99, while the ad-supported tier will see a $1 increase to $7.99.

The price hikes were announced alongside a strong earnings report, which revealed the largest subscriber growth in a three-month period since Netflix’s inception. In the final quarter of 2024, the company added 19 million subscribers, bringing its global total to 302 million. Revenue for the quarter surged by 16% year-over-year, exceeding $10 billion for the first time in a single quarter.

Netflix attributed the increase in subscribers to key content releases, particularly the second season of its hit show Squid Game, which is on track to become the most-watched original series in the company’s history. Other successful releases included the holiday movie Carry On and a live boxing match between influencer Jake Paul and former heavyweight champion Mike Tyson.

“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the company said in a letter to investors. Co-CEO Ted Sarandos expressed satisfaction with the success of these high-profile projects, saying, “It’s great that all these big swings worked very well in the quarter.”

The price increases at Netflix come after similar hikes by its competitors. Disney raised prices for Disney+, Hulu, and ESPN+ in August, while Warner Bros. Discovery’s Max increased its ad-free membership by $1 per month earlier in the summer.

Stock analysts have praised Netflix’s performance. Bank of America Global Research called the earnings report “very strong,” while Tigress Financial predicted that Netflix’s continued growth in subscribers would drive further gains in the company’s stock price.

In addition to its strong financial performance, Netflix led the nominations at the Golden Globes earlier this month, with 36 nods, including a win for Emilia Pérez, a film starring Zoe Saldaña and Selena Gomez.

On a conference call with investors, Sarandos addressed the recent wildfires in Los Angeles, noting that while they have caused significant disruption to people’s lives, there would be no meaningful delays to Netflix’s projects or impact to the company’s 2025 revenue. “We’re mindful of folks who need time to work through the challenges of the fires, including, in some cases, loss of life and home,” Sarandos said. He emphasized that despite the ongoing challenges—ranging from COVID to the recent strikes—the industry has remained resilient.

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