Netflix Announces Price Hike Amid Record Subscriber Growth
Netflix has announced a price increase for most of its subscription tiers in the United States and Canada, following a record-breaking addition of 19 million new subscribers in the last quarter of 2024. The streaming giant, which has seen its subscriber base grow to nearly 302 million globally, is raising prices to continue investing in programming and improving the overall user experience.
The price hike will affect various subscription plans. In the U.S., the ad-supported plan will increase from $6.99 to $7.99 per month, while the standard plan without ads will go up from $15.49 to $17.99 per month. The premium plan, which offers 4K streaming and additional features, will see a rise from $22.99 to $24.99 per month. Similar increases will be implemented in Canada, Argentina, and Portugal.
Netflix's decision to raise prices comes after a successful quarter driven by a mix of live sporting events, popular returning series, and exclusive content. The company's fourth-quarter programming slate, which included the second season of "Squid Game" and a heavyweight boxing match between Jake Paul and Mike Tyson, attracted a record number of viewers. Additionally, two NFL games on Christmas Day, featuring a halftime performance by Beyoncé, garnered significant global viewership.
Netflix's Co-CEO Greg Peters stated, "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." The company emphasized that the price increases are necessary to support its growing slate of content and to continue delivering high-quality programming to its subscribers.
Investors have reacted positively to the news, with Netflix's stock surging by approximately 13% in extended trading, adding nearly $50 billion to the company's market value. Over the past year, Netflix shares have gained more than 77%, outperforming the S&P 500's 24% rise.
Netflix's success in the last quarter of 2024 can be attributed to its strategic focus on live events and exclusive content. The company's investment in live-streamed events, such as the Jake Paul vs. Mike Tyson boxing match and NFL games, has proven to be a major draw for viewers. Additionally, the return of popular series like "Squid Game" and "Wednesday" has kept subscribers engaged and attracted new users.
As Netflix continues to expand its content offerings and invest in new programming, the company remains committed to providing a high-quality streaming experience for its subscribers. With the recent price hike, Netflix aims to sustain its growth and maintain its leadership position in the streaming market.