Netflix Hikes Subscription Fees Amid Rapid Growth in New Subscribers

Netflix Raises Prices Amid Record Subscriber Growth

Netflix has announced that it will be increasing its subscription costs in several countries, including the US, Canada, Argentina, and Portugal. This move comes after the streaming giant added nearly 19 million new subscribers in the final months of 2024.

The price hike is expected to affect almost all plans, with the standard subscription without ads now costing $17.99 per month in the US, up from $15.49. The membership plan with ads will also rise by one dollar to $7.99.

Netflix’s Growing Popularity

The company’s impressive subscriber growth can be attributed to a range of popular content, including the second series of South Korean drama Squid Game and sports events such as the boxing match between Jake Paul and Mike Tyson. Netflix also streamed two NFL games on Christmas Day and has acquired the rights for the FIFA Women’s World Cup in 2027 and 2031.

Investment in Content

Netflix’s decision to raise prices is part of its strategy to continue investing in high-quality content. The company stated that it will “occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.” This investment is expected to result in even more engaging and diverse programming in the future.

Financial Performance

Netflix’s financial performance has been impressive, with net profit doubling to $1.8bn between October and December compared to the same period last year. Sales also rose from $8.8bn to $10.2bn during this time.

Industry Expert Analysis

Paolo Pescatore, a technology analyst at PP Foresight, commented on Netflix’s move to raise prices: “Netflix is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals.” This suggests that the company is confident in its ability to maintain its market lead despite increasing competition.