Netflix to Increase Prices as Subscriber Numbers Surge
Netflix to Increase Prices as Subscriber Numbers Surge.
Netflix is set to implement price increases in several countries following the addition of nearly 19 million subscribers in the latter part of 2024.
The streaming service has announced that subscription fees will rise in the United States, Canada, Argentina, and Portugal.
When inquired about potential price hikes in the United Kingdom, a Netflix representative stated that there is currently "nothing to share."
The company reported subscriber growth that exceeded expectations, bolstered by the second season of the South Korean series Squid Game, as well as notable sporting events, including a boxing match featuring influencer-turned-fighter Jake Paul and former heavyweight champion Mike Tyson.
In the United States, nearly all subscription plans will see an increase, including the standard ad-free plan, which will now be priced at $17.99 (£14.60) per month, up from $15.49.
Additionally, the ad-supported membership will also see a price increase of one dollar, bringing it to $7.99.
The last price adjustment in the United States occurred in October 2023, coinciding with increases for certain plans in the UK.
"We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix," it said.
The company announced that it concluded the previous year with over 300 million subscribers in total. It was anticipated that an additional 9.6 million new subscribers would be gained between October and December; however, the actual figure significantly exceeded this expectation.
This marks the final occasion on which Netflix will disclose quarterly subscriber growth. Moving forward, the company indicated that it will "continue to announce paid memberships as we cross key milestones."
In addition to popular titles such as Squid Game and the Paul vs. Tyson fight, Netflix also streamed two NFL games on Christmas Day.
Furthermore, the platform plans to broadcast more live events, including WWE wrestling, and has acquired the rights to the FIFA Women's World Cup for the years 2027 and 2031.
Paolo Pescatore, a technology analyst at PP Foresight, said Netflix "is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals".
Net profit for the period from October to December increased twofold to $1.8 billion in comparison to the corresponding period of the previous year. Sales experienced an uptick from $8.8 billion to $10.2 billion.
While Netflix’s price hikes may be justified by its recent subscriber growth and diversified content, they could alienate long-time users and limit its appeal to price-sensitive customers. As subscription costs rise, especially for the ad-supported plan, many may question whether the platform’s offerings are worth the additional expense.
LATEST: Treasury Intervenes to Safeguard Car Loan Firms' Payouts.
With competition from other streaming services intensifying, Netflix risks losing subscribers who are already stretched by rising living costs. The company’s focus on increasing prices could potentially backfire if customers start to explore more affordable alternatives, which could harm long-term growth and customer loyalty.
