Netflix announced on Tuesday that it will raise subscription prices for most of its tiers in the US and Canada following a surge of 19 million new subscribers in the last quarter of 2024.
This significant increase in subscribers, the largest in the company’s history, brought Netflix’s global total to 302 million, reinforcing its position as the leader in the streaming industry.
The company credited its recent success to events such as the Mike Tyson vs. Jake Paul boxing match in November, which attracted 108 million viewers globally, making it the most-watched sporting event on the platform. Additionally, Netflix streamed two NFL games on Christmas Day, which averaged 30 million viewers worldwide, setting records for the most-streamed football games.
Subscriber growth was also fueled by the success of “Squid Game” season two, which became the platform’s biggest premiere, attracting 68 million views in its first week. Earlier in January, Netflix also began broadcasting WWE “Raw” on Monday nights.
As part of the announcement, Netflix revealed the price hikes: the standard subscription without ads will rise from $15.49 to $17.99 per month, while the ad-supported plan will increase by $1 to $7.99. The premium tier, which includes 4K video quality, will see a $2 increase, bringing the price to $24.99 per month.
Netflix announced that it will increase subscription prices as part of its ongoing investment in programming and to continue providing value for its members. The company mentioned in a letter to investors that these price adjustments will help reinvest into further improving the platform.
This is the latest in a series of price hikes across the streaming industry as companies push for increased profitability by encouraging subscribers to opt for lower-priced, ad-supported plans. Other streaming services like Disney, Max, Peacock, and Apple have also raised their prices in recent years. Netflix last raised its standard plan price in 2022.
For the last quarter, Netflix reported a 16% increase in revenue, surpassing $10 billion for the first time. The company also saw a 52% increase in operating income, reaching $2.3 billion. Additionally, Netflix announced a $15 billion stock buyback, leading to a 13% rise in its share prices.
Ted Sarandos, Netflix’s co-CEO, highlighted the success of live sporting events in the company’s recent growth, particularly events like the Mike Tyson vs. Jake Paul boxing match and the two NFL games streamed on Christmas Day. Sarandos also mentioned that the company will continue to explore live events, including sports, as part of its strategy for future growth.
In a significant change, Netflix will no longer report its paid membership numbers quarterly. Instead, it will publish a semi-annual “engagement report” to provide updates on its progress.
The increase in paid subscriptions solidifies Netflix’s position as the leader in the streaming industry. While other legacy media companies have heavily invested in launching their own streaming platforms to compete with Netflix, many of them have struggled to achieve the same market dominance. Netflix noted that its focused approach and consistent investment have contributed to its success, especially in markets where traditional cable and broadcast businesses are in decline.