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Netflix has solidified its position as the streaming industry leader, announcing unprecedented subscriber growth and strategic price increases across multiple markets. The entertainment giant added 18.9 million subscribers in the fourth quarter of 2023, pushing its global subscriber base to an impressive 302 million customers.
The company's success has prompted price adjustments in several markets, including the United States, where the standard ad-free subscription will increase to $17.99 from $15.49. The ad-supported tier will see a modest rise to $7.99, reflecting Netflix's growing confidence in its market position. Similar increases will be implemented in Canada, Portugal, and Argentina.
"Netflix reaffirms its leadership position and is absolutely running away in the streaming market," notes Paolo Pescatore of PP Foresight. "It is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals."
The company's fourth-quarter performance exceeded expectations, driven by hit content including the second season of "Squid Game" and successful forays into live events. A boxing match between Jake Paul and Mike Tyson drew 65 million streams, while NFL Christmas Day games averaged 30 million global viewers, ranking among the league's most-streamed competitions.
Financial results reflect this momentum, with quarterly revenue reaching $10.2 billion, a 16% year-over-year increase. Net profit doubled compared to the previous year, reaching $1.8 billion. The company's stock responded enthusiastically, surging approximately 13% in extended trading and adding nearly $50 billion to its market value.
Looking ahead, Netflix is expanding its live programming strategy, securing rights to WWE "Monday Night Raw" wrestling and the FIFA Women's World Cup in 2027 and 2031. The company's ad-supported tier continues to gain traction, accounting for 55% of new sign-ups in available markets. Co-CEO Greg Peters reported doubled advertising revenue year-over-year, with expectations to repeat this growth in 2024.
Netflix has revised its 2025 revenue guidance upward by $500 million, now projecting between $43.5 billion and $44.5 billion. The company's board has approved an additional $15 billion for share repurchases, bringing the total buyback authorization to $17.1 billion.
Notably, Netflix transitions away from reporting quarterly subscriber numbers, instead, focuses on revenue and profit metrics, its trajectory suggests continued dominance in the streaming landscape.
