Netflix shares soared 13% to an all-time high on Wednesday after the streaming giant reported a record-breaking 18.9 million new subscribers in the final quarter of 2024. The surge in sign-ups, fueled in part by the company’s growing investment in sports content, reassured investors that Netflix still has room to expand even as competition in the streaming industry intensifies.
With this latest growth, Netflix’s global subscriber base has surpassed 300 million, solidifying its dominance in the streaming wars. The company, already valued at over $370 billion, is set to add more than $50 billion to its market capitalization if the stock gains hold. During early trading, shares hit a record high of $988, raising speculation about a potential stock split.
Alongside its strong subscriber numbers, Netflix announced price increases for several markets, including the United States. Standard and premium memberships in the U.S. will rise by $2 per month to $18 and $25, respectively, while the ad-supported standard plan will increase by $1 to $8 per month.
“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix,” the company stated in a letter to investors.
In Ireland, the price adjustments mean that a basic subscription remains at €8.99, while standard and premium plans cost €14.99 and €20.99, respectively.
Analysts point to Netflix’s strategic push into live sports as a key factor behind its latest success. The platform’s expansion into the sports market included high-profile events such as a boxing match between Jake Paul and Mike Tyson and the debut of National Football League (NFL) games on Christmas Day. The Tyson-Paul fight, which aired on November 15, became the most-streamed sporting event in Netflix history and drove record sign-ups, according to Antenna, a data analytics firm.
“Netflix defied expectations once again, delivering subscriber additions far beyond even the most optimistic forecasts,” said Laurent Yoon, an analyst at Bernstein.
The company has also secured U.S. broadcast rights for the 2027 and 2031 FIFA Women’s World Cups, further signaling its growing presence in the sports streaming market. Analysts predict that Netflix will continue bidding for major sports rights in the near future.
Despite its impressive subscriber gains, Netflix’s revenue growth was more modest. Sales rose 16% year-over-year and exceeded estimates by only $100 million, a relatively narrow margin considering the scale of new sign-ups. Analysts attribute this to a higher proportion of new subscribers coming from lower-revenue markets and the increasing popularity of the company’s lower-cost, ad-supported plan.
“While subscriber growth was nearly double what was expected, the revenue beat was much smaller,” said Ben Barringer, a technology analyst at Quilter Cheviot. However, he noted that the price increases announced for 2025 should help boost future earnings.
Netflix is set to release highly anticipated new seasons of hit series such as Stranger Things and Wednesday, along with its first live broadcasts of WWE RAW. The company’s continued expansion into sports and original programming is expected to keep it ahead of competitors, including Disney, Comcast, Paramount, and Warner Bros. Discovery.
At least 20 analysts have raised their price targets on Netflix stock, bringing the median target to $970, according to LSEG data. The company’s 12-month forward price-to-earnings ratio now stands at 35.43, compared to Disney’s 19.19.
With a strong content lineup and strategic shifts toward sports and advertising, Netflix appears poised for continued dominance in the streaming industry—despite increasing competition and the challenges of monetizing its massive subscriber base.
