Netflix announced on Tuesday, January 21 that it will raise the prices of most of its subscriptions. The streaming giant reported 19 million new subscribers in the last quarter of 2024.
Netflix increases the price of subscriptions Photo: Pixabay
Users in the US, Canada, Portugal and Argentina will be affected by this increase in the price of subscriptions, to begin with.
The increase in the number of subscribers, the largest ever recorded by Netflix, puts the streaming giant at 302 million globally, strengthening the company’s position in the first place in the industry, reports CNN.
Netflix attributes the increase in new users to the boxing match between Mike Tyson and Jake Paul, which aired on the platform in November. The boxing match would have attracted 108 million viewers worldwide, thus becoming the most broadcast sports event in history. Netflix subsequently hosted two NFL games on Christmas Day, which averaged 30 million viewers globally, making them the most-watched football games in history.
Subscriptions were also boosted by the success of the second season of “Squid Game,” the platform’s biggest premiere yet, which attracted 68 million views in its first week. Earlier this month, Netflix also added WWE “Raw” live streams on Monday nights.
The price hikes announced Tuesday will see the standard ad-free monthly subscription rise from $15.49 to $17.99, while a standard account with ads will increase by a dollar to $7.99. The most expensive premium tier, which includes 4K video quality, will increase by $2 to $24.99.
“PAs we continue to invest in programs and deliver more value to our members, we’ll occasionally ask them to pay a little more so we can reinvest to keep making Netflix better,” the company said in a letter to investors.
“To that end, we are adjusting prices today for most plans in the US, Canada, Portugal and Argentina (which was already considered in the 2025 guidance we provided in October 2024)“, they also specified.
The company reported on Tuesday that its revenue rose 16% in the latest quarter, surpassing $10 billion for the first time in its history, while operating income totaled $2.3 billion, a 52% increase from from the previous year. Netflix also announced a $15 billion share buyback. The news sent shares up 13%.
