The stock price of Netflix in the US is soaring, and the subscription plans are comprehensively increasing.

Netflix's fourth-quarter financial report is impressive, with a user base of 18.9 million and revenue and earnings far exceeding expectations. The stock price rose more than 14% in after-hours trading on Tuesday. Netflix announced a $15 billion stock buyback and raised its annual revenue forecast. Netflix estimates that its revenue in 2025 will be between $43.5 billion and $44.5 billion, higher than the previous forecast of $43 billion to $44 billion.

By the end of 2024, Netflix held two NFL games and the "Jake Paul vs. Mike Tyson" boxing match, along with the strong return of season 2 of "Squid Game", leading to a strong growth in Netflix subscribers. Netflix announced that it will adjust the prices of most packages in the United States, Canada, Portugal, and Argentina.

Netflix's subscription plans have been comprehensively raised

The basic plan price of Netflix in the US and Canada has increased from the previous $6.99 to $7.99, and the standard plan without ads has increased from $15.49 to $17.99. The premium plan will increase by $2 to $24.99, and users who want to share the plan with others will need to pay $8.99, an increase of $1. Netflix Taiwan raised prices last year, and the current basic monthly fee is 290 NT dollars, the standard plan is 380 NT dollars, and the premium plan is 460 NT dollars. The standard and premium plans can add two members to share the plan, and each shared member needs to pay 100 NT dollars.

Netflix successfully entered the online sports live broadcast market

Netflix CEO Greg Peters said at the financial conference that although there has been a strong promotion of sports live programs recently, the significant increase in the number of subscribers is not driven by any specific program, and online live streaming accounts for only a small portion of new users.

In November last year, the match between internet celebrity Jake Paul and Mike Tyson attracted over 108 million viewers worldwide, making it the most-watched sports event in history. The Super Bowl in 2024 attracted 124 million American viewers. For Netflix, which has just launched live sports broadcasting, this is an impressive achievement.

Netflix stated in its letter to shareholders that its focus is not on 'broadcast rights for major regular sports events'; Netflix's live strategy is to offer 'can't-miss' special event programs.

The average audience for NFL games is about 30 million people, making it the most-watched Christmas in American history, according to Netflix. With the debut of WWE Raw, Netflix will continue to invest more in sports events. There are also rumors that Netflix may bid for UFC rights in the next step.

Netflix stated in a letter to shareholders that its focus is not on the rights to broadcast large regular sports events; the live strategy is to offer unmissable special event programs.

EPS and operating profit margin are much higher than expected, analysts are generally optimistic.

Netflix's fourth-quarter revenue reached $10.25 billion, surpassing Bloomberg's forecast of $10.11 billion, a 16% growth compared to the same period last year. Netflix expects revenue for the first quarter to reach $10.42 billion, lower than the market's general expectation of $10.48 billion.

This season's diluted earnings per share (EPS) also exceeded expectations, with the company reporting earnings per share of $4.27, higher than the expected $4.18 and far higher than the earnings per share of $2.11 reported for the same period last year.

Netflix's fourth-quarter operating margin is 22.2%, and the full-year operating margin for 2024 is 27%, showing a steady increase in Netflix's operating income.

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