Netflix to Raise Prices as New Subscribers Surge
Netflix has announced a price hike across multiple countries following an impressive surge in new subscribers. The streaming giant added nearly 19 million subscribers in the final quarter of 2024, exceeding expectations and solidifying its position as a leader in the streaming industry. This growth was largely driven by the highly anticipated second season of the South Korean drama Squid Game and major sports events, including a boxing match featuring influencer-turned-fighter Jake Paul and former heavyweight champion Mike Tyson.
Countries Affected by the Price Increase
Subscribers in the United States, Canada, Argentina, and Portugal will see higher costs for Netflix plans. The changes include:
Standard Plan (No Ads): Increasing from $15.49 to $17.99 per month in the US.
Ad-Supported Plan: Rising by $1 to $7.99 per month.
Netflix last raised its prices in the US in October 2023, a move that also affected certain plans in the UK. However, when asked about a potential price increase in the UK this time, a Netflix spokesperson said, "There is nothing to share right now."
Justifying the Price Hike
In a statement, Netflix explained, “We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.” The company has continued to enhance its programming with a diversified slate of offerings, including live events and exclusive sports coverage.
Subscriber Milestones and Financial Growth
Netflix ended 2024 with over 300 million total subscribers, far surpassing the anticipated addition of 9.6 million subscribers in the final quarter. The company also announced that it will no longer report quarterly subscriber growth. Instead, it will highlight paid memberships when significant milestones are reached.
Financially, Netflix reported a net profit of $1.8 billion for the October-to-December period, doubling its performance compared to the same time in 2023. This profitability underscores the success of its diverse content strategy.
Expanding Content and Live Events
In addition to Squid Game and the Paul vs. Tyson fight, Netflix’s streaming lineup included two NFL games on Christmas Day. The platform plans to expand its live event offerings with WWE wrestling and has secured broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031.
Paolo Pescatore, a technology analyst at PP Foresight, commented, “Netflix is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals.”