SAN FRANCISCO — Netflix has achieved remarkable growth by adding nearly 19 million subscribers during the holiday season quarter, exceeding analyst expectations and showing that its venture into live programming is yielding positive results. This increase comes amidst a quarter where Netflix broadcasted prominent events such as a widely publicized boxing match between YouTube star Jake Paul and heavyweight champion Mike Tyson, as well as two NFL games on Christmas Day. Despite primarily pursuing live programming to enhance its advertising sales, Netflix's growth has also provided current subscribers with additional reasons to remain with the platform, which now boasts over 300 million subscribers, marking a 41 million increase from 2023.

The latest earnings report, which covers the October-December period, indicates Netflix’s robust performance, revealing earnings of $1.9 billion, or $4.27 per share, nearly doubling from the same time in 2023. Overall revenue grew by 16% year-over-year to reach $10.2 billion.

In its shareholder letter, Netflix disclosed plans to raise subscription prices in the U.S., Canada, Portugal, and Argentina. Though specific pricing details are yet to be announced, the company generally increases prices by $1 or $2 per month.

Netflix appears confident that these upcoming price hikes will not lead to mass subscriber cancellations, as it slightly adjusted its revenue forecast to a mid-range of $44 billion, translating to a conceptual rise of approximately 13% from last year.

In anticipation of post-earnings trading, Netflix's shares experienced a surge of 3%. If this momentum continues into the following sessions, it could mark a new stock milestone, building upon the impressive 83% stock increase seen last year, which resulted in nearly $200 billion in additional shareholder wealth.

In tandem with price hikes, Netflix’s strategy includes a focus on increasing its advertising revenue, a move that began in late 2022 with the introduction of a lower-priced service tier that integrates commercial interruptions for the first time. Advertisements are primarily featured during live programming, contributing to high-profile partnerships with the NFL, WWE, and the Women’s World Cup.

The company has yet to release specific figures regarding its advertising revenue, but management indicates that it expects this income stream will remain modest for at least another year or two. Nevertheless, Netflix's appeal predominantly lies in its extensive catalog of scripted television series and films, with upcoming seasons of highly acclaimed shows such as "Stranger Things," "Squid Game," and "You" set to attract viewers in 2024.

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