Netflix shares rose 15% to an all-time high after the company added a record 18.9 million new subscribers during the holiday quarter. Netflix’s major push into live sports, including events like the Jake Paul vs. Mike Tyson boxing match and the Christmas Day NFL games, was largely responsible for the growth. These events not only helped Netflix attract subscribers, but also generated more advertising revenue, especially through its ad-supported tier. Analysts are bullish on Netflix’s growth, with many raising their price targets for the stock.
As these events attract large audiences and advertisers, Netflix’s strategy of focusing on special events like sports appears to be working. However, while subscriber growth was strong, revenue did not grow as much as expected, indicating that many of the new subscribers came from lower-income markets or the less expensive ad-supported tier.
Despite this, Netflix’s decision to increase subscription prices in multiple markets, including the U.S., is expected to help boost revenue going forward. The company’s global subscriber base now exceeds 300 million, maintaining its position as a leader in the streaming industry. Netflix is likely to continue investing in sports broadcast rights and is already preparing for future events such as the FIFA Women’s World Cup in 2027 and 2031.
For 2025, Netflix is expected to continue its strategy of diversifying its content portfolio with more sporting events such as WWE RAW, along with upcoming seasons of popular shows such as Stranger Things and Wednesday. With these initiatives, Netflix is positioning itself for continued growth, shifting its focus from subscriber additions to overall revenue performance. In summary, Netflix’s strong subscriber growth is being complemented by strategic investments in live sports and higher subscription pricing. While the company’s outlook for monetizing the massive influx of subscribers remains positive, its stock is expected to continue to rise.