Netflix Smashes Estimates, Adding Nearly 19M Subscribers In Q4 To Hit 301.6M Worldwide

Group 1: Subscriber Growth and Financial Performance - Netflix added nearly 19 million subscribers in Q4 2024, reaching a total of 301.6 million globally, significantly exceeding Wall Street's expectation of 9.8 million [1] - The company reported revenue of $10.247 billion and earnings per share (EPS) of$4.27, surpassing the expected revenue of $10.1 billion and EPS of$4.21 [2] - The quarter featured high-impact programming, including the second season of Squid Game and the Jake Paul-Mike Tyson boxing event, contributing to a company record for subscriber growth [3][4] Group 2: Strategic Shift and Market Position - Netflix plans to shift its focus from reporting subscriber numbers to emphasizing revenue, operating margin, and audience engagement metrics [2] - The company maintains that it accounts for no more than 10% of total TV time in its operating markets, indicating potential for future growth despite some plateauing in certain territories [4] - Netflix's subscriber count does not include "extra member" accounts from paid password sharing, suggesting a total audience of 700 million globally [5] Group 3: Competitive Landscape and Future Outlook - The company acknowledges intense competition from traditional entertainment and big tech, while highlighting its focus on product/market fit without the distractions of declining linear networks [5] - Netflix's stock has surged nearly 80% over the past year, although there are concerns regarding its valuation relative to fundamentals [7] - The results mark the beginning of a series of earnings reports from major tech and media companies, with a spotlight on competitors like Disney and Warner Bros. Discovery [6]