Netflix added nearly 19 million subscribers during the holiday-season quarter to help propel its earnings beyond analysts' projections, capping the video streaming service's best year yet in a sign that its expansion into live programming is paying off.

The numbers released Tuesday covered a October-December period highlighted by Netflix's streaming of a widely watched fight between YouTube sensation Jake Paul and former heavyweight boxing champion Mike Tyson in addition to two National Football League games on Christmas Day. Those marquee events helped Netflix to easily surpass the 13 million subscribers that picked up in the same quarter during 2023.

Although Netflix's interest in live programming is primarily tied to its efforts to sell more commercials, it also appears to be giving current subscribers another reason to stick with the service while also reeling in more viewers to pay for the service. Netflix ended last year with more than 300 million worldwide subscribers, an increase of 41 million from 2023. That eclipsed its previous best year of growth during 2020 when its service added more 36.6 million subscribers amid pandemic lockdowns that kept people corralled at home and desperate for entertainment.

Forrester Research analyst Mike Proulx thinks live programming is quickly becoming Netflix's "secret ingredient" that is helping to widen its lead over its streaming rivals. "With more choice in programming than ever before, streaming services need to differentiate," Proulx said. "FOMO (fear of missing out) is a powerful tool in piquing interest and creating stickiness."

The October-December breakdown marked the last time Netflix plans to provide a quarterly count on its total subscribers as management tries to get investors to... Read More