San Francisco (AFP) – Netflix on Thursday reported a quarterly profit of $2.9 billion as revenue grew 13 percent, aided by recent subscription price hikes. The streaming television service indicated it was “off to a good start in 2025” with revenue of $10.5 billion in the recently ended quarter. Shares in the Silicon Valley-based company were up more than four percent in after-market trades.
Revenue increased due to slightly higher subscription and ad earnings, along with the timing of some expenses, according to Netflix. Earlier this year, the company raised prices for premium and standard memberships in the United States by two dollars per month, bringing them to $25 and $18, respectively, while the standard ad-supported tier increased by one dollar. To boost sputtering growth, Netflix launched an ad-subsidized offering in late 2023, coinciding with a crackdown on sharing passwords. The streaming service had announced in January that a top priority would be growing its ad business.
Netflix has been steadily improving its ad platform as viewers continue to shift away from traditional television to streaming shows on demand. “We’re executing on our 2025 priorities: improving our series and film offering and growing our ads business; further developing newer initiatives like live programming and games; and sustaining healthy revenue and profit growth,” Netflix stated in a letter to shareholders.
The company forecast revenue growth of 15 percent in the current quarter, crediting its lineup of shows and films along with enhancements to its ad platform. “We remain optimistic about our 2025 slate with a lineup that includes returning favorites, series finales, new discoveries and unexpected surprises designed to thrill our members,” Netflix communicated to shareholders.
Netflix highlighted successes such as its “Adolescence” series, which has logged around 124 million views, and the Spanish-language film “Counterattack” from Mexico. In February, Netflix announced it would spend $1 billion over four years producing films and series in Mexico, supporting that government’s efforts to attract investment amid US tariff threats.
Investors perceive Netflix as a rare haven in a stock market affected by US President Donald Trump’s fluctuating tariff plans targeting numerous trade partners. This quarter also marks a shift for Netflix, as the company will stop reporting subscriber numbers along with its earnings figures. Analysts regard the company as the leading video streaming service, concluding the previous year with over 300 million subscribers.
© 2024 AFP
