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Home » $10.5 Billion in 3 Months: Netflix Cashes in on Price Hikes, Ads and New Moves

$10.5 Billion in 3 Months: Netflix Cashes in on Price Hikes, Ads and New Moves

Joan Aimuengheuwa by Joan Aimuengheuwa
April 18, 2025
in TechTAINMENT
1
Netflix Cashes in on Price Hikes, Ads
Source: Getty Images

Source: Getty Images

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In the first three months of 2025, streaming giant Netflix pulled in $10.5 billion—up 13% compared to the same period last year. 

Profit grew by 25%, with earnings hitting $6.61 per share. Wall Street expected less. Netflix delivered more.

What’s fuelling the engine? Price hikes, for one. In January, Netflix raised subscription fees in key markets including the U.S., UK, and Argentina. France is next. And for those trying to outsmart the system through password sharing, the platform responded with an $8.99 charge per extra member.

But there’s more. Netflix has quietly changed its strategy. It no longer shares how many subscribers it gains or loses. That metric, once treated like gospel, has been tossed aside. 

Now the focus is squarely on money—revenue, profit, margins. All signs point to a company that’s matured and wants the world to know it.

Operating income came in at $3.3 billion, a solid 27% increase, smashing expectations. The operating margin hit 31.7%, more than three percentage points above its own target. That’s not just strong; it’s aggressive efficiency.

Co-CEO Greg Peters didn’t sugar-coat anything when speaking to analysts. “We’re paying close attention to consumer sentiment and where the broader economy is moving. Based on what we’re seeing, there is nothing significant to note.” His tone was measured but confident—Netflix knows where it’s going.

We also got a rare glimpse into the advertising push. Netflix has launched its own ad tech platform in the U.S., and plans to take it global. “We believe our ad tech platform is foundational to our long term ads strategy,” the company said in its report. 

The goal? Better targeting, fresh ad formats, and more value for advertisers. And yes, they expect ad revenue to double in 2025.

Live content is another power play. After grabbing attention with last year’s Mike Tyson vs. Jake Paul boxing event, Netflix is going all in. There’s a rematch between Amanda Serrano and Katie Taylor on the cards. WWE’s Monday Night Raw is already part of the streaming menu. The company has gone beyond being a content library to a live stage now.

In Nigeria, the ripple effect has been real. Last July, Netflix hiked its Premium Plan by 40%—from ₦5,000 to ₦7,000. That came just three months after the Standard Plan jumped from ₦4,000 to ₦5,500. Users grumbled. Netflix didn’t blink. These increases form part of its wider goal: make more money from existing users.

Let’s not forget the massive subscriber gain Netflix saw at the end of 2024—18.9 million new members. But with slower growth forecast for 2025, the company is tightening its grip on profitability, not popularity.

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Joan thrives at helping individuals and businesses scale via storytelling...

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