Netflix to raise prices as new subscribers soar

Streaming giant Netflix, after adding nearly 19 million users in the final months of 2024, has announced that it will be raising subscription prices in several countries. The price increases will affect users in the United States, Canada, Argentina, and Portugal, among others, in order to support its continued investment and content improvements.

Netflix stated, "We occasionally ask our members to pay a little more so that we can reinvest and further improve Netflix." The company's better-than-expected user growth was driven by the popularity of the second season of "Squid Game" and sports events such as the boxing match between Jake Paul and Mike Tyson. In the US, the price of almost all plans will increase, including the standard ad-free subscription, which will rise from $15.49 to $17.99 per month (approximately £14.60). The price for ad-supported memberships will also increase by $1 to $7.99.

Netflix last raised prices in the US in October 2023, when it also increased the price of some plans in the UK. When asked if the UK would see a price increase, a Netflix spokesperson said there was "no news to share at this time." Meanwhile, the company announced that its total subscriber base exceeded 300 million at the end of last year, far exceeding the previously expected 9.6 million new users. This is the last time Netflix will publish quarterly user growth figures, and in the future, it will "continue to announce paid membership numbers when key milestones are reached."

In addition to "Squid Game" and the Paul vs. Tyson fight, Netflix also streamed two NFL games live over Christmas. The company will also stream more live events, including WWE wrestling matches, and has purchased the rights to broadcast the Women's World Cup in 2027 and 2031. Paul Pescatore, a tech analyst at PP Foresight, said that Netflix is "now showing its strength by adjusting prices because its programming is stronger and more diverse compared to its competitors."

Netflix's net profit doubled year-on-year to $1.8 billion between October and December, while sales also increased from $8.8 billion to $10.2 billion. These strong financial figures and user growth further solidify Netflix's leading position in the streaming industry and lay a solid foundation for its future development.