Netflix Increases Prices Following Record-Breaking Subscriber Growth
Netflix has announced price hikes for most subscription tiers in the US and Canada, following its largest-ever quarterly subscriber surge. The streaming giant reported an addition of 19 million new subscribers in the last quarter of 2024, bringing its global total to 302 million users.
This unprecedented growth was attributed to several high-profile events and releases. The Mike Tyson vs. Jake Paul boxing match in November drew a staggering 108 million viewers worldwide, becoming the most-streamed sporting event in history. Additionally, Netflix hosted two Christmas Day NFL games, which averaged 30 million viewers globally, setting new records for football game streaming.
The release of Squid Game Season 2 also played a significant role in the platform’s success, with 68 million views in its first week, marking it as Netflix’s most-watched series premiere to date. The addition of WWE’s Raw broadcasts on Monday nights further expanded Netflix’s audience base.
New Pricing Structure
Starting soon, Netflix will implement the following changes:
The standard ad-free plan will rise from $15.49 to $17.99 per month.
The ad-supported standard plan will increase by $1 to $7.99 per month.
The premium tier, which includes 4K streaming, will see a $2 increase to $24.99 per month.
Netflix justified the price hikes in a letter to investors, stating: “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
Record Revenue and Future Plans
The company also reported a 16% revenue increase, surpassing $10 billion for the first time, while operating income rose by 52% to $2.3 billion. A $15 billion stock buyback announcement sent Netflix shares soaring by 13%.
During an investor call, Netflix Co-CEO Ted Sarandos highlighted the impact of live events and sports on the platform’s growth, emphasizing their importance in the company’s long-term strategy.
“We had an incredible quarter with three huge live events, including a record-breaking fight, two NFL games, and Squid Game Season 2, one of our biggest TV series ever,” Sarandos said.
He added that Netflix is open to further exploring live sports, provided the financial dynamics align with the company’s goals.
This earnings report marks the final time Netflix will release quarterly paid membership figures, though the company assured investors it will continue to share key milestones as they occur.