Netflix is raising subscription prices in several countries following a surge of nearly 19 million new subscribers in the final quarter of 2024.
The price increases will affect users in the United States, Canada, Argentina, and Portugal, the streaming giant confirmed. However, a spokesperson for Netflix stated there was “nothing to share right now” regarding potential price hikes in the UK.
In the United States, most subscription plans will see a rise in cost. The standard plan without advertisements will now cost $17.99 per month, up from $15.49. Meanwhile, the ad-supported membership will increase by $1 to $7.99. This marks Netflix’s first price adjustment in the U.S. since October 2023.
Netflix defended the decision, stating:
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
The company reported better-than-expected subscriber growth, driven by the release of “Squid Game” Season 2, and sports events such as the boxing match between Jake Paul and Mike Tyson.
Netflix exceeded forecasts by gaining over 19 million new subscribers between October and December 2024, bringing its global total to more than 300 million subscribers.
This marks the final time Netflix will report quarterly subscriber growth, as it plans to instead announce paid membership milestones moving forward.
Netflix continues to expand its programming lineup. In addition to “Squid Game” and high-profile sports events, the platform streamed two NFL games on Christmas Day. Upcoming live events include WWE wrestling and exclusive broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031.
Netflix’s net profit for the fourth quarter doubled year-over-year to $1.8 billion, with revenue climbing from $8.8 billion to $10.2 billion.
Technology analyst Paolo Pescatore from PP Foresight commented on Netflix’s position:
“Netflix is now flexing its muscles by adjusting prices, given its far stronger and diversified programming slate compared to rivals.”
As Netflix continues to grow its subscriber base and expand its content portfolio, the price adjustments signal a strategy to reinvest in high-quality programming and maintain its competitive edge.
