American subscription video-on-demand OTP streaming service Netflix has announced an increase in subscription prices for its premium and standard plans in the United States, Argentina, Canada, and Portugal. The streaming giant cited its ongoing investments in content and efforts to enhance programming as the key reasons for the price hike.
A Year of Growth and Milestones
2024 was a remarkable year for Netflix, with the platform gaining nearly 19 million subscribers during the holiday season alone. By the end of the year, its total subscriber count exceeded 300 million. In total, Netflix achieved a record-breaking annual net addition of 41 million subscribers.
The company reported a profit of USD1.87 billion in the fourth quarter, supported by revenue of USD10.25 billion, reflecting double-digit growth compared to the same period in 2023.
Revised Subscription Rates
The updated pricing for Netflix’s plans is as follows:
Premium Plan: USD25 per month (an increase of USD2).
Standard Plan: USD18 per month (an increase of USD1).
Ad-Supported Standard Plan: USD8 per month (an increase of USD1).
Why Are Prices Going Up?
Netflix explained that the price adjustments are part of its strategy to continue delivering high-quality programming. In a statement to investors, the company emphasized the importance of reinvesting in content and improving the overall value for subscribers.
"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 re-invest to further improve Netflix," the company stated.
Driving Success Through Content
The rise in subscription costs comes as Netflix benefits from its extensive library of popular shows and films. The global phenomenon "Squid Game", which returned with its second season, remains the platform’s most-watched series, strengthening its cultural impact. Upcoming seasons of hit shows like "Stranger Things" and "Wednesday" are expected to further engage audiences.
New Features and Partnerships
Netflix is expanding its offerings to include partnerships and sports programming. U.S. viewers can look forward to 52 weeks of WWE professional wrestling and NFL games during the holiday season. Additionally, Netflix has introduced joint subscription packages with platforms like Peacock and Apple TV.
Looking Ahead to 2025
As Netflix continues to lead the streaming market, it is refining its pricing strategy and diversifying its offerings, including live programming and ad-supported plans. The ad-supported tier now accounts for over 55% of sign-ups in eligible regions, with ad revenue becoming a key growth driver.
For 2025, Netflix projects revenue between USD43.5 billion and USD44.5 billion, aiming for a 29% operating margin. Despite fierce competition, the company’s stock has soared 80% over the past year, significantly outperforming major indices like the S&P 500 and NASDAQ.