Netflix raises prices as it posts records subscriber growth in fourth-quarter earnings

Core Insights - Netflix added nearly 19 million subscribers during the holiday season quarter, exceeding analysts' expectations and indicating the success of its expansion into live programming [1][3] - The company ended the year with over 300 million subscribers, an increase of 41 million from 2023, and reported earnings of $1.9 billion, or $4.27 per share, nearly doubling from the same period in 2023 [3][4] - Netflix plans to raise prices in the US, Canada, Portugal, and Argentina, typically by $1 or $2 per month, while slightly increasing its revenue outlook for the year to a mid-range of $44 billion, reflecting a 13% increase from last year [5][6] Subscriber and Revenue Growth - The October-December period included significant events such as a widely watched fight and NFL games, contributing to subscriber growth [2] - Netflix's revenue climbed 16% year-over-year to $10.2 billion, showcasing robust financial performance [4] Advertising Strategy - The company is focusing on selling more advertising, initiated in late 2022 with a low-priced service that includes commercials, particularly during live programming [8] - Despite the push for advertising revenue, Netflix's primary appeal remains its scripted TV series and movies, with upcoming seasons of popular shows like Stranger Things and Squid Game [10] Market Reaction - Following the earnings report, Netflix's shares surged by 3% in extended trading, with a potential new high if similar performance continues in regular trading [7]