Netflix will raise prices in several countries after adding 19 million new subscribers in the final quarter of 2024. Netflix’s subscription price hike was confirmed by the company for the United States, Canada, Argentina, and Portugal, starting immediately.
In the US, most plans will see price increases, including the standard ad-free subscription rising to $17.99 from $15.49. The ad-supported plan will increase by $1, bringing the cost to $7.99. Netflix justified the changes by stating, “We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix.”
While Netflix’s spokesperson declined to comment on potential price hikes in the UK, past trends suggest similar actions could follow. The company last increased US and UK subscription fees in October 2023.
The price hike announcement followed Netflix’s impressive performance, surpassing expectations by adding more than 19 million subscribers between October and December. The total subscriber base now exceeds 300 million globally, doubling initial estimates of 9.6 million new members.
Hits like Squid Game’s second season and major live events, including the Jake Paul vs. Mike Tyson boxing match, fueled the subscriber surge. Netflix also offered exclusive broadcasts, such as two NFL games on Christmas Day, adding to its appeal.
Additionally, Netflix plans to expand live sports coverage with upcoming WWE wrestling events and rights to FIFA Women’s World Cup tournaments in 2027 and 2031. Paolo Pescatore, a technology analyst, commented, “Netflix is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals.”
The company’s net profits doubled to $1.8 billion during this period, while revenue grew to $10.2 billion from $8.8 billion last year. Moving forward, Netflix announced a shift in its reporting format, reserving subscriber updates for milestone announcements. As Netflix’s subscription price hike strategy takes form, the company focuses on competitive programming and financial growth. It also remains focused on delivering exclusive content.
