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Netflix has started 2025 on a strong note. The company announced that its revenue went up by 12.5% in the first quarter, reaching $10.54 billion. This means Netflix made more money compared to the same time last year. They also earned $3.3 billion in operating income, which shows the company is doing well financially.
One big change this time is that Netflix stopped sharing how many subscribers it has. Usually, Netflix tells everyone how many people are watching their service, and investors use this number to see if the company is growing. But now, Netflix says it wants to focus more on how much money it makes and how active its users are. They will only share subscriber numbers when they hit important milestones. Experts think Netflix made this change because its subscriber growth has slowed down, even though it still has a huge 302 million subscribers at the end of 2024.
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Netflix’s revenue grew mainly because more people signed up and because the company raised its subscription prices in several countries like the US, Canada, Portugal, and Argentina. For example, the cheapest plan with ads went up from $6.99 to $7.99 a month. The standard plan without ads increased from $15.49 to $17.99, and the most expensive premium plan went from $22.99 to $24.99 a month. These price increases, along with a little bit of money from ads, helped Netflix make more money than they expected.
Looking ahead, Netflix expects its revenue to grow even more in the second quarter of 2025. They think revenue will go up by 15%, thanks to more price increases and expanding their advertising business. Netflix is also trying new things, like showing live events such as NFL football games and boxing matches. They want to bring these live events to more countries outside the US. Netflix believes that offering real stories from different places and exciting live events will help keep their large and diverse audience happy.
Besides the money news, Netflix said that Reed Hastings, one of the company’s founders, will step down from his executive chairman job and become the board chairman in a less active role. This change comes at a time when Netflix and other big tech companies are being accused of avoiding billions of dollars in taxes.
Netflix’s strong first quarter follows a very good end to 2024. During the holiday season, Netflix added nearly 19 million new subscribers, reaching about 302 million people watching worldwide. This big growth happened because of popular shows like “Squid Game,” live sports, and special events like Beyoncé’s halftime show during an NFL game. These helped Netflix get a lot of viewers and stay on top in the streaming world.
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Netflix’s revenue increases by 12.5% in Q1 2025 show that the company is growing by charging more and offering great content. Even though they stopped sharing subscriber numbers for now, Netflix is focusing on making money and keeping viewers engaged. This approach will be important for the company’s future success.
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