Netflix is set to increase subscription prices across several countries after reporting nearly 19 million new subscribers in the final months of 2024.
The price hikes would affect users in the US, Canada, Argentina, and Portugal, the streaming giant said.
“We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix,” the company stated in a release.
The surge in subscribers came largely thanks to the second season of the popular South Korean drama Squid Game and the high-profile boxing match between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson. Additionally, Netflix’s coverage of two NFL games on Christmas Day bolstered its appeal.
In the US, the price increase will affect almost all subscription plans. The standard subscription, which is ad-free, will rise to $17.99 per month, up from $15.49.
The membership with adverts will also see an increase, now costing $7.99 per month, up by $1. This marks the second price hike in the US in less than a year, following an increase in October 2023.
When asked whether the UK would see a similar price rise, a Netflix spokesperson replied, “There is nothing to share right now.”
Netflix’s strong performance led to better-than-expected results for the final quarter of 2024. The company added 19 million subscribers during the period, far exceeding expectations of 9.6 million new sign-ups. This growth pushed Netflix’s total global subscriber count above 300 million.
The company also revealed that this will be the final time it reports quarterly subscriber growth. Going forward, Netflix will announce updates on paid memberships as it reaches key milestones.
Netflix’s diversification in content, including live events like WWE wrestling and its acquisition of broadcast rights for the FIFA Women’s World Cup in 2027 and 2031, has made it more competitive in the streaming market.
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.”
Netflix also reported a significant boost in financial performance. Its net profit for the October to December period more than doubled to $1.8 billion, compared to the same period a year earlier. Sales rose from $8.8 billion to $10.2 billion.
Boluwatife Enome
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