Prime Highlights:
Netflix raises prices for its U.S. streaming plans, including the standard plan (from $15.49 to $17.99), the ad-supported plan (from $6.99 to $7.99), and the premium plan (from $22.99 to $24.99).
Price increases will also apply to Netflix plans in Canada, Portugal, and Argentina.
Netflix added a record 19 million paid memberships in Q4 2024, surpassing 300 million global subscribers.
Key Background:
Netflix revealed on Tuesday that it will increase the prices of several of its streaming plans in the U.S., including both the standard and ad-supported tiers. The price for the standard, ad-free plan will rise from $15.49 to $17.99 per month, while the newly introduced ad-supported plan will see an increase from $6.99 to $7.99. Additionally, the premium plan will increase from $22.99 to $24.99 per month.
The streaming giant also confirmed that similar price hikes will be implemented in other markets, including Canada, Portugal, and Argentina. These changes were announced alongside Netflix’s fourth-quarter earnings report, which highlighted the company’s ongoing efforts to increase profitability amidst rising competition in the streaming industry.
In recent years, Netflix, along with its competitors such as Disney+ and Warner Bros. Discovery’s Max, has introduced higher prices and ad-supported plans to reach financial sustainability. Co-CEO Ted Sarandos emphasized during the earnings call that Netflix’s investment in upcoming original content would justify the price increase, noting an exciting slate of releases scheduled for 2025.
This marks the first time Netflix has adjusted the price of its ad-supported tier since its launch in November 2022. The company’s decision to introduce this lower-cost option followed slowing subscriber growth, and it has since garnered 70 million global monthly active users on the ad-supported plan. Netflix also highlighted its strategy to curb password sharing by offering users the option to add “extra members” to their accounts for an additional fee. This move has contributed to the company’s strong subscriber growth, as it added a record 19 million paid memberships in the fourth quarter, surpassing 300 million subscribers worldwide. While price hikes are becoming more common in the streaming industry, Netflix’s continued investment in content and efforts to reduce password sharing appear to be paying off, as evidenced by its record subscriber growth.
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