Netflix to increase prices as subscriber growth surges
Netflix will raise prices in several countries following a surge in subscribers, adding nearly 19 million new users in the final months of 2024. The streaming service announced price hikes in the US, Canada, Argentina, and Portugal.
“We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix,” the company said in a statement.
Netflix’s strong subscriber growth was fueled by hit content such as the second season of South Korean drama Squid Game, as well as major sports events, including the Jake Paul vs. Mike Tyson boxing match.
In the US, prices will rise across almost all subscription plans. The standard, ad-free plan will increase to $17.99 per month (up from $15.49), while the ad-supported plan will see a $1 hike, reaching $7.99 per month. The last price increase in the US occurred in October 2023, and some UK plans also saw a price rise at that time. When asked about potential price hikes in the UK, a Netflix spokesperson said there was “nothing to share right now.”
Netflix closed out 2024 with more than 300 million total subscribers, surpassing expectations. The company had anticipated 9.6 million new subscribers between October and December but exceeded that number. This will be the last time Netflix reports quarterly subscriber growth; moving forward, it will announce paid membership figures as it reaches key milestones.
In addition to Squid Game and the Paul vs. Tyson fight, Netflix streamed two NFL games on Christmas Day. The company also plans to air more live events, including WWE wrestling, and has secured the rights to broadcast the FIFA Women’s World Cup in 2027 and 2031.
Technology analyst Paolo Pescatore noted that Netflix is “flexing its muscles” by raising prices, thanks to its stronger and more diverse programming compared to competitors.
For the October to December period, Netflix’s net profit doubled to $1.8 billion, compared to the same period in 2023. Revenue also rose from $8.8 billion to $10.2 billion.