Netflix Increases Prices Following Record-Breaking Subscriber Surge
Netflix--
Netflix announced Tuesday that it will raise subscription prices in the U.S. and Canada after reporting a staggering 19 million new subscribers in the final quarter of 2024—the largest quarterly increase in the company’s history. This surge brings Netflix’s total global subscriber base to an unprecedented 302 million, solidifying its position as the industry leader.
The streaming giant credited much of its success to several high-profile events, including the Mike Tyson vs. Jake Paul boxing match in November, which attracted 108 million viewers worldwide, making it the most-streamed sporting event ever. Netflix also made history on Christmas Day by broadcasting two NFL games, which averaged 30 million global viewers each.
Popular original content also played a role, with the highly anticipated second season of “Squid Game” breaking records as Netflix’s biggest premiere to date, garnering 68 million views within its first week. Additionally, the platform’s recent addition of live WWE “Raw” broadcasts on Monday nights contributed to its subscriber growth.
Subscription Prices on the Rise
To sustain its momentum, Netflix announced price increases for most of its plans. The standard ad-free plan will rise from $15.49 to $17.99 per month, while the standard ad-supported plan will increase by $1 to $7.99. Meanwhile, the premium tier, which includes 4K streaming, will see a $2 hike, bringing the price to $24.99 per month.
“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 reinvest and further improve Netflix,” the company stated in a letter to investors.
This marks Netflix’s first price hike since 2022 and comes as streaming platforms across the board, including Disney+, Max, and Peacock, have increased their fees in a competitive market.
Strong Financial Performance
Netflix’s latest earnings report showcased its financial strength, with revenue surging 16% to exceed $10 billion for the first time in its history. Operating income jumped 52% year-over-year to $2.3 billion, and the company announced a $15 billion stock buyback plan. The positive results sent Netflix shares soaring by 13% on Tuesday.
Ted Sarandos, Netflix’s co-CEO, highlighted the platform’s recent success with live events during the investor call. “We had an incredible quarter with massive live events like the Tyson-Paul fight and NFL games, combined with one of our biggest TV series ever in ‘Squid Game’ season two,” he said. Sarandos hinted that Netflix plans to expand its investment in live events and sports to drive future growth.
A Shift in Reporting Metrics
Netflix revealed that it will no longer report its paid membership figures on a quarterly basis. Instead, the company will issue a biannual “engagement report” to provide updates.
The record-breaking subscriber growth cements Netflix’s dominance in the streaming industry, even as traditional media companies like Disney and Warner Bros. Discovery pour billions into competing services. While some competitors have recently reached profitability, they continue to lag behind Netflix in market share and global reach.
With its focus on innovation and continued investment in live content, Netflix is well-positioned to maintain its leadership in an increasingly competitive streaming landscape.
