The streaming service Netflix ended the 2024 year on a high as they added 19 million new subscribers in the final quarter, making this the biggest rise in a single quarter yet.
Not only did the subscriber figures increase, but so did the annual operating income as this exceeded $10 billion for the first time in the company’s history.
The year concluded with 301.63 million subscribers worldwide, with Netflix’s paid-for memberships starting at $7.99 a month.
In a shareholder letter, the company cites the reasons why this substantial growth likely took place: “In Q4, membership growth was driven by broad strength across our content slate, improved product/market fit across all regions and typical Q4 seasonality.”
While the figures have been very positive, the streaming service announced last year it would no longer be reporting paid memberships on a regular quarterly basis from 2025. This is due to revenue and the operating margin being the final financial metrics the California-based media company wishes to focus on.
Why did Netflix’s subscribers increase so much in Q4 of 2024?
A number of new titles were released nearer the end of the year, including original films like Carry-On which saw 160.1M views, Family Pack from France (43.5M views), That Christmas (63.8M views), Our Little Secret (84.4M views), and The Six Triple Eight (54.5M).
The most-streamed sporting event ever, the Jake Paul – Mike Tyson boxing match, also took place in Q4 and was followed up with the NFL on Christmas Day which became the two most streamed NFL games in history.
The company will be aiming to replicate this going forward, as they’ve just secured the US rights for the FIFA Women’s World Cup in 2027 and 2031.
“We want to be the first place members go for entertainment – whatever your taste or mood, and whomever you are watching with.
“Engagement underpins that goal, as we believe it is the best proxy for customer satisfaction, which in turn leads to higher retention, acquisition and value for our service.
“In 2024, despite a slower start due to the strikes, we successfully delivered a strong slate and healthy engagement,” said Netflix in the shareholder letter.
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