Netflix hikes prices following record subscriber growth
Netflix announced on Tuesday that it will increase prices across most of its subscription tiers in the US and Canada, following a record 19 million new subscribers added in the fourth quarter of 2024.
This surge in subscriptions, Netflix’s largest-ever, brings its global total to 302 million, solidifying its position as the leading streaming service in the world.
The company credited its recent success to a variety of high-profile events. The Mike Tyson vs. Jake Paul boxing match in November attracted 108 million viewers worldwide, becoming the most-streamed sporting event in history. Additionally, Netflix streamed two NFL games on Christmas Day, drawing an average of 30 million viewers and setting records for the most-streamed football games.
Subscriptions were further boosted by the popularity of “Squid Game” season two, which saw 68 million views in its first week, and the recent addition of WWE “Raw” broadcasts on Monday nights.
As part of its strategy to increase revenue, Netflix is raising prices for several subscription tiers. The standard ad-free plan will increase from $15.49 to $17.99 per month, while the ad-supported standard plan will rise by $1 to $7.99. The premium plan, which includes 4K video, will see a $2 increase to $24.99.
Netflix explained that the price hikes are part of its ongoing efforts to invest in content and provide more value to subscribers, saying, “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
The price increase follows a broader trend in the streaming industry, where services like Disney, Max, Peacock, and Apple have also raised their prices in recent years. Netflix last raised its standard plan price in 2022.
For the most recent quarter, Netflix reported a 16% revenue increase, surpassing $10 billion for the first time in its history. Operating income jumped 52% year-over-year to $2.3 billion. The company also announced a $15 billion stock buyback program, which led to a 13% surge in its stock price on Tuesday.
During the investor call, Netflix co-CEO Ted Sarandos highlighted the company’s success with live events, noting, “Even in an amazing quarter with three huge live events—an incredible fight, two NFL games—we also had one of our biggest TV series ever with ‘Squid Game’ season two, all of which were very successful events and titles we are thrilled about.”
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