Netflix Achieves Record-Breaking $10 Billion Operating Profit with 27% Margin
Global Subscribers Surpass 300 Million, Fueled by ‘Squid Game Season 2’ and Sports Events
Mike Tyson’s Boxing Matches and NFL Games drive Engagement
[서울경제TV=유여온 인턴기자] Netflix experienced a meaningful stock price surge in after-hours trading on the 22nd, following the release of its extraordinary fourth-quarter earnings report for the previous year. The streaming giant’s financial performance exceeded market expectations, marking a historic milestone.
According to Netflix’s earnings report published on the 21st (local time), the company’s fourth-quarter revenue reached $10.247 billion (approximately KRW 14.7249 trillion), reflecting a 16% year-over-year growth. Net profit for the quarter stood at $1.869 billion (approximately KRW 2.6858 trillion), with earnings per share (EPS) at $4.27 (approximately KRW 6,136).
Netflix added 18.91 million paid subscribers globally during the fourth quarter, bringing its total subscriber base to 301.63 million. This marks the first time Netflix has surpassed the 300 million subscriber threshold.The company clarified that this figure excludes additional member accounts within households, emphasizing that its content reaches over 700 million viewers worldwide. “We are bringing joy to millions of households globally,” Netflix stated.
The streaming platform’s quarterly revenue and net profit outperformed Wall Street analysts’ predictions,as compiled by financial data provider LSEG (projected revenue of $10.11 billion and EPS of $4.20). additionally, the subscriber count exceeded the estimate of 290.9 million by market research firm Street account.
Netflix also reported a 16% increase in annual revenue for 2024, with its operating profit margin rising by 6 percentage points to 27%. For the first time, the company’s operating profit crossed the $10 billion mark (approximately KRW 14.365 trillion). Netflix revised its annual revenue forecast for the current year to $43.5 billion to $44.5 billion (approximately 62.5 trillion to 63.9 trillion won), up from its previous estimate. The projected operating profit margin for the year was also raised to 29%, a 1 percentage point increase.
following the earnings announcement after the stock market closed, Netflix’s stock price jumped over 14% in after-hours trading. The company attributed its strong fourth-quarter performance to several key content releases, including Season 2 of the Korean drama ‘Squid Game’, Mike Tyson’s boxing match, and two NFL games featuring pop icon Beyoncé. Netflix highlighted that ’Squid Game Season 2′ garnered 165.7 million views in the quarter, solidifying its position as one of the most-watched original series seasons.
In the gaming sector, ‘Squid Game: unleashed’, launched in the fourth quarter, topped the Apple App Store’s free game charts in 107 countries. It is projected to become Netflix’s most downloaded game to date.Looking ahead, Netflix expressed optimism for 2025, naming ‘Squid Game’ (season 3), the American drama ‘Wednesday’ (Season 2), and ‘Stranger Things’ (Season 5) as its most anticipated releases.“We are entering the new year with confidence and excitement,” the company added. /[email protected]
Netflix’s Unprecedented Growth: A Triumph of Content and sports Engagement
In a landmark achievement, Netflix has shattered records with an astounding $10 billion operating profit, boasting a remarkable 27% margin.This financial milestone underscores the streaming giant’s dominance in the entertainment industry, propelled by a combination of blockbuster content and astute investments in live sports events.
A Global Subscriber Base Surpassing 300 Million
Netflix’s global subscriber base has now eclipsed 300 million, a testament to the platform’s ability to captivate audiences worldwide. The much-anticipated release of Squid Game Season 2 has been a significant driver, reigniting interest and drawing both new and returning viewers. Though, Netflix’s strategy extends beyond scripted content, with live sports emerging as a pivotal engagement tool.
Sports: The Game-Changer for Netflix
The inclusion of high-profile sports events has proven to be a masterstroke for Netflix. The platform’s coverage of Mike Tyson’s Boxing Matches and NFL Games has not only attracted sports enthusiasts but also provided a unique blend of entertainment that transcends traditional streaming boundaries. These events have fostered a sense of live, communal viewing, a rarity in the on-demand streaming era.
Mike Tyson’s return to the ring, in particular, has been a cultural phenomenon, blending nostalgia with modern-day spectacle. Meanwhile,NFL games have tapped into the massive American football fanbase,further diversifying Netflix’s appeal. This dual focus on sports and original content has created a robust ecosystem that keeps subscribers hooked.
Financial Triumph and Market Confidence
The announcement of Netflix’s record-breaking financial results triggered a significant surge in its stock price during after-hours trading. The market’s enthusiastic response highlights the confidence investors have in Netflix’s innovative strategy and its ability to adapt to evolving consumer preferences.
The Future of Streaming: A Hybrid Model
Netflix’s success serves as a blueprint for the future of streaming platforms.By seamlessly integrating live sports with its existing catalog of original shows, Netflix has demonstrated the viability of a hybrid model. This approach not only enhances subscriber retention but also opens new revenue streams through advertising and partnerships.
As the streaming wars intensify,Netflix’s ability to innovate and diversify its offerings will be crucial in maintaining its leadership position. The inclusion of sports is no longer just an experiment but a cornerstone of its growth strategy.
Conclusion
Netflix’s $10 billion operating profit and 27% margin are more than just financial metrics—they are a reflection of the platform’s evolution into a multifaceted entertainment powerhouse. With Squid Game Season 2 captivating audiences and sports events driving unprecedented engagement, Netflix has set a new standard for the industry. As competitors scramble to replicate this formula, Netflix continues to redefine what it means to be a global streaming leader.
The message is clear: in the race for subscriber loyalty, content is king, but sports might just be the ace up the sleeve.
