Netflix + Boxing = Punching Above 300M Subscribers

Hey Superheroes,

The markets have been on quite the rollercoaster this week as Wall Street’s earnings season kicks off and Donald Trump returns to the White House.

MicroStrategy shareholders just gave the green light for even more Bitcoin buys. Check out our latest Deep Dive article to discover how MicroStrategy has become the world’s largest corporate holder of Bitcoin.

But this week, Netflix stole the spotlight with its latest earnings results. Let’s dive in.

Netflix Crushes Q4 with Big Subscriber Gains

Netflix reported its Q4 2024 quarterly earnings on Wednesday and the numbers are looking as binge-worthy as Squid Game.

With investors cheering the results, Netflix shares are up 14% over the past week.

📊 The Numbers

Here’s how Netflix performed last quarter compared to analyst expectations:

• Revenue: US$10.11B expected vs. $10.25B actual (↑1.38%)
• Earnings per share: US$4.20 vs. US$4.27 (↑1.67%)
• Paid memberships: $290.9M vs. $301.63M (↑3.69%)

19 million new subscribers joined Netflix during the holiday season quarter, pushing its total subscriber count past the 300 million mark for the first time ever. That’s a whopping 41 million new members since 2023.

Perhaps you’ve heard that Netflix will stop sharing its subscriber metrics as of 2025. With Q4 being the final quarter for these reports, the streaming giant will pivot to releasing biannual “engagement reports” starting this year.

🤩 Profits Soar

Netflix’s net income last quarter soared to US$1.87 billion, more than doubling the US$938 million it posted in Q4 2023.

Key events like the Mike Tyson vs. Jake Paul boxing match, the Christmas Day NFL games and the release of Squid Game Season 2 played a starring role.

The company’s push into live programming seems to be paying off big time. Co-CEO Ted Sarandos highlighted that subscribers are sticking around for weeks after tuning in for the fight and games.

It’s official: The streaming giant’s dive into live sports is proving to be a winning strategy.

💸 Price Hikes Ahead

In typical Netflix fashion, big wins come with some not-so-fun news for subscribers. 

The streaming giant is bumping up costs for several plans in the U.S., Canada, Portugal, and Argentina:

• Standard ad-supported tier: From US$6.99 to US$7.99 ( ↑14%)
• Standard ad-free tier: From US$15.49 to US$17.99 (↑ 16%)
• Premium tier: From US$22.99 to US$24.99 (↑8.7%)

Netflix has a history of spacing out price hikes, with similar increases happening in 2017, 2019, 2020 and 2022. Could this pattern hint at when your next bill might climb? 

Interestingly, Netflix revealed that its most affordable ad-supported tier has been a hit, accounting for over half of sign-ups in countries where it’s available. For many, it seems a few ads are worth the savings.

🔦  Some other things we’re shining the Spotlight on:

NOT CATCHY ENOUGH: Catch.com.au is officially closing its doors after failing to keep up with the rapid rise of competitors like Temu and Shein. The site’s last trading day will be April 30, 2025. However, its mobile service Catch Connect will continue to operate unaffected as it’s owned separately.

TIKTOK BAN… OR NOT?: After a brief shutdown over the weekend, TikTok in the U.S. is back online thanks to intervention from Donald Trump. He suggested he’d support a partnership involving Elon Musk or Oracle Chairman Larry Ellison teaming up with the U.S. government to purchase the platform.

FORTESCUE HITS RECORD OUTPUT: Fortescue Metals Group (ASX:FMG) has reported record iron ore shipments with an impressive 97.1 million tonnes shipped in the first half of the financial year. Despite the strong performance, concerns loom over a potential Chinese tariff on Australian iron ore.

Enjoy your long weekend, Superheroes! Just a reminder, the ASX will be closed on Monday. 

Keep up to date on the markets by following us on Instagram, @superheroau!