Netflix has announced plans to raise subscription prices in several countries following a surge in new subscribers in the last quarter of 2024.
The streaming giant added nearly 19 million new subscribers, prompting the decision to increase costs in the US, Canada, Argentina, and Portugal.
In a statement, Netflix explained that the price hike was necessary to continue investing in improving its services.
The company highlighted popular programs like the second season of the South Korean drama Squid Game and sporting events such as the boxing match between Jake Paul and Mike Tyson as contributing factors to its strong subscriber numbers.
In the US, the standard subscription without ads will increase to $17.99 per month, up from $15.49. The ad-supported membership will also see a one-dollar increase to $7.99 per month. This marks the first price adjustment in the US since October 2023.
While Netflix did not confirm plans for price hikes in the UK, the company revealed that it ended 2024 with over 300 million subscribers globally. The impressive subscriber growth has led Netflix to change its reporting approach, focusing on paid memberships instead of quarterly growth figures.
The company’s profitability also saw a significant boost, with net profits doubling to $1.8 billion in the final quarter of 2024. Sales rose from $8.8 billion to $10.2 billion during the same period.
Netflix’s expansion into live events like NFL games and WWE wrestling, as well as securing rights to the FIFA Women’s World Cup in 2027 and 2031, demonstrates the platform’s commitment to diversifying its content offerings.
Technology analyst Paolo Pescatore praised Netflix for its content strategy, stating that the price adjustments reflected the platform’s strong programming lineup compared to its competitors.
