Netflix is increasing prices for certain subscribers following the addition of 18.9 million new customers in the last quarter of 2024. The price hikes will affect users in the United States, Canada, Portugal, and Argentina, while the company has yet to confirm whether the UK will experience similar increases.
In the United States, the standard monthly plan with ads will rise to $7.99 (£6.49), the standard plan without ads will increase to $17.99 (£14.60), and the premium plan will now cost $22.99 (£18.66). Currently, in the UK, the prices are £4.99 for a standard monthly plan with ads, £10.99 for the standard plan without ads, and £17.99 for a premium account.
By the end of last year, Netflix boasted over 300 million subscribers, marking a gain of 41 million from 2023. This surpassed its previous record in 2020, when it added 36.6 million subscribers during pandemic lockdowns. Following the announcement of the subscriber increase, Netflix’s shares jumped by 14%.
The surge in subscribers is largely attributed to Netflix’s streaming of a highly publicized fight between YouTube star Jake Paul and former heavyweight champion Mike Tyson, as well as two NFL games on Christmas Day.
Forrester Research analyst Mike Proulx noted that live programming is becoming a key factor in Netflix’s competitive edge over other streaming services. “With more choice in programming than ever before, streaming services need to differentiate,” Proulx stated. “FOMO (fear of missing out) is a powerful tool in piquing interest and creating stickiness.”
In the final quarter of 2024, Netflix reported earnings of $1.9 billion, or $4.27 per share, nearly doubling from the same period in 2023.
Netflix appears confident that the price increases will not lead to significant cancellations. Co-CEO Ted Sarandos emphasized the importance of having strong content and engagement to support the price hike during a conference call with analysts.
