Netflix to raise prices as new subscribers soar

After adding nearly 19 million subscribers in the final months of 2024, Netflix has announced that it will raise subscription prices in several countries. The streaming company stated that it will increase subscription fees in the United States, Canada, Argentina, and Portugal. The company explained that in order to further invest in and improve Netflix's services, they will occasionally ask members to pay slightly higher fees.

Netflix's reported subscriber growth exceeded expectations, largely due to the release of the second season of the South Korean drama "Squid Game" and the broadcast of sporting events, including a boxing match between influencer boxer Jake Paul and former world heavyweight champion Mike Tyson. In the United States, prices for almost all plans will increase, with the standard ad-free plan rising from $15.49 to $17.99 per month (approximately £14.60).

The price of the ad-supported subscription plan will also increase by $1 to $7.99. Netflix last raised prices in the US in October 2023, when the company also increased prices for some plans in the UK. When asked if prices would also increase in the UK, a Netflix spokesperson said "there is no information to share at this time."

Meanwhile, the company stated that its total global subscriber count exceeded 300 million at the end of last year. Previously, the market expected the company to add 9.6 million subscribers between October and December, but the actual number far exceeded expectations. This will be the last time Netflix publishes quarterly subscriber growth data; going forward, the company stated it will "continue to announce when paid membership numbers reach key milestones."

In addition to "Squid Game" and the Paul vs. Tyson boxing match, Netflix also streamed two NFL games on Christmas Day. The company will also stream more events, including WWE wrestling matches, and has purchased the broadcast rights for the 2027 and 2031 FIFA Women's World Cups. Paul Pescatore, a technology analyst at PP Foresight, said that Netflix is "now flexing its muscles by adjusting prices because its programming is stronger and more diverse than its competitors."

During the October to December period, Netflix's net profit doubled year-on-year to $1.8 billion. Sales also increased from $8.8 billion to $10.2 billion.