Netflix to raise prices as new subscribers soar
3 min read
Netflix has announced plans to raise its subscription prices in several countries, including the US, Canada, Argentina, and Portugal, following a significant increase in subscribers. The streaming giant added nearly 19 million new subscribers in the last quarter of 2024, driven by successful content like the second season of the hit South Korean drama Squid Game and events such as a boxing match between influencer-turned-fighter Jake Paul and former heavyweight champion Mike Tyson.
The company’s subscriber growth exceeded expectations, with Netflix surpassing its goal of 9.6 million new subscribers between October and December, ultimately reaching a total of over 300 million subscribers worldwide. The surge in subscriptions was also fueled by Netflix’s increasing focus on live sports events, including NFL games on Christmas Day, and its future plans to broadcast high-profile events like WWE wrestling and the FIFA Women’s World Cup in 2027 and 2031.
Netflix plans to raise prices across most of its subscription plans in the US. The standard plan, which is ad-free, will increase from $15.49 to $17.99 a month. The membership that includes ads will also see a price increase of $1, rising from $6.99 to $7.99. This price hike follows the last increase in October 2023, when Netflix raised prices for some of its plans in both the US and the UK. Despite the higher costs, the company has emphasized that these increases are necessary to continue reinvesting in content and service improvements.
Though Netflix has not yet confirmed any price hikes for the UK, a spokesperson stated that there were no updates on potential increases in the country. Despite this, Netflix’s price adjustments in other regions, combined with the expansion of its content offerings, suggest that the streaming platform is confident in its ability to retain subscribers even with rising costs.
The company also revealed that it would no longer report quarterly subscriber growth, opting instead to announce key milestones in paid memberships. Analysts have noted that Netflix is in a strong position to raise its prices, thanks to a diverse programming slate that now includes more live sports and popular shows.
According to technology analyst Paolo Pescatore of PP Foresight, Netflix is “flexing its muscles” with these price hikes, leveraging its broader content offerings to compete with rivals in the streaming industry. The company’s net profit between October and December doubled to $1.8 billion compared to the same period the previous year. Additionally, sales increased from $8.8 billion to $10.2 billion during the same quarter.
The company’s focus on exclusive content and live events has set it apart from its competitors, making it a leader in the entertainment streaming market. With the addition of major global events like the FIFA Women’s World Cup, Netflix is positioning itself as not just a platform for on-demand content, but also a destination for live sports and entertainment. As the streaming wars continue to heat up, Netflix’s strategy to invest heavily in content and leverage its vast subscriber base for price hikes is seen as a way to ensure continued growth and profitability in an increasingly competitive landscape.
Overall, Netflix’s decision to increase prices comes at a time when its content offerings are stronger than ever, with popular series, sports broadcasts, and live events driving subscriber growth. Although the price increases may upset some users, the company remains optimistic that its loyal customer base will continue to pay for its premium content and services, ensuring its position as a dominant player in the global streaming market.
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