Netflix has announced price hikes for most of its subscription tiers in the US and Canada as it reported 19 million new subscribers in the last quarter of 2024, marking its biggest-ever growth spurt. The company now boasts 302 million global subscribers.
The surge in subscriptions can be attributed to several factors, including a record-breaking Mike Tyson vs Jake Paul boxing match that drew 108 million viewers worldwide and Netflix’s popular series “Squid Game” season two, which raked in 68 million views in its first week. The company also added live WWE broadcasts on Monday nights.
As part of the price increase, the standard monthly membership without ads will jump from $15.49 to $17.99, while a standard account with ads will rise one dollar to $7.99. Its premium tier will see a $2 increase to $24.99.
The price hike is part of a broader trend in the streaming industry, where companies are raising monthly costs to boost profitability. Netflix’s revenue increased 16% last quarter, exceeding $10 billion for the first time in its history, while operating income totaled $2.3 billion, a 52% on-year increase. The company also announced a $15 billion stock buyback.
CEO Ted Sarandos emphasized the importance of live sporting events and sports to Netflix’s future growth, stating that the company will continue to explore these areas if they can be made economically viable.
Source: https://edition.cnn.com/2025/01/21/media/netflix-raising-prices-subscriber-record/index.html