Netflix has raised prices for all its US plans, with the standard monthly subscription without ads increasing to $17.99 from $15.49, and a standard monthly subscription with ads rising to $7.99 from $6.99. The price hikes come as the company reported its strongest subscriber gains in over 25 years, adding 19 million new subscribers in the last quarter of 2024.
The increase in revenue, which jumped 16% compared to the previous year, helped boost Netflix’s stock price by 12%, with shares soaring in early trading on Wednesday. The success of popular shows like “Squid Game” and movies such as “Carry On” contributed to the strong earnings report.
Netflix co-CEO Ted Sarandos attributed the company’s growth to its continued investment in programming, saying that it will occasionally ask subscribers to pay more to improve services further. The price hikes follow a trend of competitors like Disney and Warner Bros. Discovery, which also increased their streaming prices last year.
Despite the wildfires in Los Angeles potentially disrupting production, Sarandos assured investors that Netflix would maintain its release schedule and revenue projections for 2025. The company has been navigating tough industry challenges, including the COVID-19 pandemic and labor strikes, but remains confident in its ability to deliver value to subscribers.
Source: https://abcnews.go.com/Business/netflix-raises-prices-us-plans/story?id=117971949