Netflix has reported a significant financial boost in its fourth-quarter results, with revenue climbing beyond $12 billion and subscriber numbers reaching 325 million. The streaming giant attributes this surge to its strategic investment in live sports broadcasting, which has proven to be a key driver of growth.
Financial Performance and Subscriber Growth
In the latest quarterly report, Netflix's income rose by nearly 30 per cent to $2.4 billion, showcasing a robust performance in a competitive market. The platform's subscriber base expanded to 325 million, marking a notable increase that underscores the appeal of its content offerings.
Live Sports as a Catalyst
Netflix highlighted its live sports initiatives as a major factor behind the sales surge. The streaming service served as the exclusive global broadcaster for the high-profile boxing match between influencer Jake Paul and former world heavyweight champion Anthony Joshua. Additionally, its partnership with the NFL to broadcast Christmas Day American football matches contributed significantly, with over 400,000 new subscribers in 2025 alone attributed to this event.
The company also streams live golf events and is set to broadcast the World Baseball Classic in Japan next year. Netflix emphasised that live sport exemplifies how "any given hour of entertainment has the potential to deliver outsized value," reinforcing its commitment to this content strategy.
Advertising Revenue and Full-Year Results
Year-on-year advertising revenue doubled to $1.5 billion, indicating successful monetisation efforts beyond subscriptions. For the full year, Netflix achieved a net income of $11 billion on revenues exceeding $45 billion, solidifying its position as a leader in the streaming industry.
Market Reaction and Strategic Moves
Despite the strong financial results, shares dropped by seven per cent in Frankfurt early on Wednesday. This decline followed Netflix's reiteration of its commitment to pursuing a potential acquisition of Warner Bros Discovery, a move that has sparked speculation about future content rights, including access to Champions League and Olympic Games broadcasts indirectly.
Michael Ashley Schulman, chief investment officer of Running Point Capital Advisors, commented to Reuters, "Historically, Netflix has not shied away from doing what's right for long-term growth even at the expense of near-term negative share price reaction. That seems to be the case again."
Industry Context and Competition
The subscriber uptick, bolstered by sporting content, comes as streaming services increasingly invest in sports programming. For instance, Apple is preparing to screen Formula 1 for the first time this year after securing broadcasting rights in North America, while Amazon Prime has assembled an extensive collection of sports rights, including Tuesday night Champions League fixtures.
This trend highlights the growing importance of live sports in attracting and retaining subscribers, with Netflix positioning itself at the forefront through strategic partnerships and exclusive events.
