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Netflix had a record-breaking quarter. Here come the price hikes

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Netflix had a record-breaking quarter. Here come the price hikes

Netflix gained a record number of subscribers in the fourth quarter of 2024, further solidifying its dominance in the streaming market and capping the company’s biggest year yet.

The company added 19 million paid subscribers, bringing its total base to 302 million customers globally in the fourth quarter, topping even the gains it made during the COVID-19 streaming surge.

Hits such as the second season of Korean drama “Squid Game” and a live boxing match between YouTuber turned fighter Jake Paul and former heavyweight champion Mike Tyson, along with other content, helped drive viewership and subscriptions.

Netflix reported $10.2 billion in quarterly revenue, up 16% from a year ago. Net income was nearly $1.9 billion, compared with $938 million for the same period in 2023. The Los Gatos, Calif., streamer’s results beat analysts’ estimates of $10.1 billion in sales and $1.8 billion in profit, according to FactSet.

Netflix said its priorities for this year are to improve its core business with series and films and grow its ad-supported business, while continuing to develop its newer initiatives, such as live programming and games. Netflix increased its 2025 revenue forecast by about $500 million, raising its projections to a range of $43.5 billion to $44.5 billion.

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“We maintain a leadership position in engagement, revenue and profit,” Netflix said in a letter to shareholders on Tuesday.

The company’s stock price has risen significantly over the last year, closing at $869.68 on Tuesday, up nearly 80% from 12 months ago. The shares gained about 14% in after-hours trading.

“Netflix cleared an important hurdle preying on investors’ minds: Can the company keep its margins healthy against incoming pressures from a strong U.S. dollar and rising inflation?” said Thomas Monteiro, senior analyst at Investing.com. “This should shape the 2025 financial environment for the company.”

Since November 2022, Netflix has brought in more customers for its cheaper advertising subscriptions and more live-event programming to draw advertisers. Analysts say they believe this will be a key area of growth for the streamer in the future.

“In the long run, advertising offers Netflix one of its biggest growth opportunities, helping them attract new members who previously considered Netflix too expensive,” said Albie Amankona, an analyst at Third Bridge, in a statement.

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The Tyson vs. Paul match drew 65 million live concurrent streams, putting a strain on the company’s technical capabilities and resulting in glitches. Last month, Netflix streamed two NFL football games on Christmas Day with an average of more than 30 million global viewers. In January, Netflix became the exclusive home to “WWE Raw” in the U.S. and other countries.

But Netflix cautioned that the company still intends to be selective when bidding for live sports rights, which can be hugely expensive.

Co-Chief Executive Ted Sarandos said that, although Netflix was pleased with the viewership of its NFL games, “it doesn’t change the underlying economics,” calling full-season big league sports “extremely challenging.”

“We are going to be mindful of the bottom line,” Sarandos said in an earnings presentation.

The company has increased its revenue by cracking down on password sharing, offering options to people who are using their families’ and friends’ accounts but not living in the same household to pay an additional fee.

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Netflix on Tuesday said it is raising prices for most plans in the U.S., Canada, Portugal and Argentina. In the U.S., the cost of a standard plan with ads is increasing by $1 to $7.99 a month. The ad-free standard plan is going up $2.50 to $17.99 a month and premium plans will increase $2 to $24.99 a month.

Like all streaming services, Netflix will also need to continue to serve up compelling content to attract audiences. Despite the devastating wildfires that have swept through parts of the Los Angeles area, Sarandos said he doesn’t expect meaningful delays to Netflix’s productions.

“The company’s reliance on cyclical success from flagship shows like ‘Stranger Things’ or ‘Squid Game’ makes it difficult to forecast strong versus weak years,” Amankona said. “Unlike Disney, which benefits from long-standing franchises, Netflix’s limited investment in repeatable IP adds further volatility.”

The company’s slate of upcoming content includes new seasons of the Addams Family series “Wednesday” and a third season of “Squid Game” coming out later this year.

One of its upcoming film big bets is “Narnia,” directed by Greta Gerwig, which will exclusively premiere on Imax for two weeks before it’s released on Netflix in 2026.

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‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million

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‘Stranger Things’ finale turns box office downside up pulling in an estimated  million

The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.

Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.

Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.

AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.

The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.

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Expectations for the theater showing was high.

“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”

It was a rare win for the lagging domestic box office.

In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.

With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.

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Tesla dethroned as the world’s top EV maker

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Tesla dethroned as the world’s top EV maker

Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.

Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.

Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.

Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.

On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.

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According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.

Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.

“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”

BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.

Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.

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In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.

In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.

However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.

As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.

“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.

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Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.

Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.

Consumers held protests against the brand and some celebrities made a point of selling their Teslas.

Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.

Investors, however, remain largely optimistic about Tesla’s future.

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Shares are up nearly 40% over the last six months and have risen 16% over the past year.

Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.

The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.

Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.

“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”

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Shares were down about 2% on Friday after the company reported earnings.

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Elon Musk company bot apologizes for sharing sexualized images of children

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Elon Musk company bot apologizes for sharing sexualized images of children

Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.

Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.

The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.

“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”

xAI did not immediately respond to a request for comment.

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Its chatbot posted an apology.

“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”

The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.

Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.

“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.

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Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.

In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.

In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.

Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.

The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.

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xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.

Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.

The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.

xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.

However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.

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