Netflix audience soars to 302 million thanks to “Game of Squid” – the service raised subscription prices

Following the results of the last quarter, the popular streaming platform Netflix was able to attract a record 18.9 million new subscribers, which ensured the growth of its total audience to 302 million people. In the future, the company plans to focus on improving its financial performance, so changes in the number of users will not be officially disclosed.

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One of the steps to improve financial performance will be to increase prices for Netflix services in the USA, Canada, Portugal and Argentina. US users who want to watch ad-supported Netflix will pay $7.99 per month instead of $6.99, and premium subscriptions will rise 9% to $24.99. On the back of such news, Netflix shares rose 13%, increasing the company’s capitalization to over $50 billion. Over the past year, Netflix shares have risen in price by more than 77%, outpacing the S&P 500 index’s 24% rise.

Netflix’s success has been largely driven by the popularity of the second season of Squid, which may well become the service’s most-watched original series. Broadcasts of sports and cultural events are also attracting record numbers of Netflix users. Thus, the boxing match between Jake Paul and Mike Tyson in November attracted 65 million customers. A pair of decisive NFL matches attracted 30 million viewers each, renewing the record for popularity among similar events of the organization. The rights to broadcast matches of the FIFA Women’s World Cup in 2027 and 2031 have also been acquired by the company.

Such large events are also in demand by advertisers, as they allow them to reach the maximum audience. Netflix managed to double its advertising revenue last year and is looking to do so again this year. In the fourth quarter, the company’s advertising revenue exceeded management’s expectations. Ad-required plans account for 55% of new subscriptions in countries where Netflix is ​​available.

At the end of last year, Netflix’s operating profit exceeded $10 billion for the first time, and specific earnings per share of $4.27 were higher than market expectations. Revenue at the end of the last quarter increased by 16% to $10.2 billion. This year the company expects revenue from $43.5 to $44.5 billion, the forecast was increased by $500 million compared to the previous one. Finally, Netflix’s board of directors approved the allocation of another $15 billion for the repurchase of shares in addition to the previous $2.1 billion. This news also cheered up investors.