Netflix Will Increase Subscription Fees After Rapid Subscriber Growth

Netflix plans to increase its fees in the US, Canada, Argentina, and Portugal following the addition of about 19 million new members.

In the latter months of 2024, Netflix reported about 19 million new members, and now it plans to raise membership fees in a number of countries.

Users in the US, Canada, Argentina, and Portugal will be impacted by the price increases, the streaming behemoth stated.

“On occasion, we will request a small increase from our members in order to reinvest in bettering Netflix,” the business said in a press statement.

The famous South Korean drama Squid Game’s second season and the well-known boxing battle between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson were major contributors to the subscriber boom. Additionally, Netflix’s popularity was increased by its broadcast of two NFL games on Christmas Day.

The price rise will impact nearly all subscription options in the United States. The monthly cost of the ad-free regular membership will increase from $15.49 to $17.99 per month.

The ad-supported subscription will also go up, going from $7.99 to $1 a month. In less than a year, this is the second price rise in the United States, after one in October 2023.

A Netflix representative said, “There is nothing to share right now,” in response to a question about whether a comparable price increase will occur in the UK.

Netflix’s impressive success in the last quarter of 2024 produced better-than-expected profits. The corporation exceeded its target of 9.6 million new sign-ups by adding 19 million users throughout that time. Netflix now has more than 300 million subscribers worldwide as a result of this development.

Additionally, the business disclosed that it will no longer publish quarterly subscriber growth. As it achieves significant milestones, Netflix will continue to provide updates on premium subscribers.

Netflix has increased its competitiveness in the streaming market by diversifying its programming, which includes live events like WWE wrestling and the 2027 and 2031 FIFA Women’s World Cup broadcast rights.

“With its far stronger and diversified programming slate compared to rivals, Netflix is now flexing its muscles by adjusting prices,” said Paolo Pescatore, a technology analyst at PP Foresight.

Additionally, Netflix announced a notable improvement in its financial results. Comparing the October to December quarter to the same time last year, its net profit more than quadrupled to $1.8 billion. Sales increased to $10.2 billion from $8.8 billion.