Netflix Shocks with New Price Hikes After Adding 19 Million Subscribers

Netflix is once again increasing its subscription prices in key markets, including the U.S., Canada, Argentina, and Portugal. Netflix price hike announcement follows a historic quarter for the company, which added nearly 19 million new subscribers in Q4 2024, far surpassing its projected growth of 9.6 million. This surge was fueled by the release of Squid Game season two and live sports events, such as the Jake Paul vs. Mike Tyson boxing match and two NFL games on Christmas Day.

Details of Netflix Price Increase

The latest Netflix price increases will impact almost all tiers in the U.S.:

Standard plan (no ads): Now $17.99 monthly, up from $15.49.

Premium plan (four streams): Increased by $2 to $24.99 monthly.

Ad-supported plan: Marking its first price hike, it rises from $6.99 to $7.99 monthly.

Extra Member Add-On: Now $8.99, up from $7.99.

Netflix price hike was last done in U.S. in October 2023. While no changes are planned for the UK yet, a spokesperson hinted that adjustments might come later. Netflix justified the move, saying, “We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”

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Strong Earnings Propel NFLX Stock

Netflix’s Q4 2024 results underline its dominance in the streaming industry. Revenue rose to $10.2 billion, up from $8.8 billion in the same quarter last year, while net profit doubled to $1.8 billion. These results have sent Netflix stock (NFLX) soaring as the company solidifies its leadership in the streaming market. The increased prices are part of Netflix’s broader strategy to reinvest in content and bolster its competitive edge.

Programming Power 

A mix of blockbuster content and strategic live events have powered Netflix’s growth. The much-anticipated return of Squid Game drew massive viewership, while live broadcasts like the Paul vs Tyson fight and NFL games showcased the platform’s expanding portfolio. Upcoming live events, such as WWE wrestling and future FIFA Women’s World Cups in 2027 and 2031, further highlight Netflix’s focus on live sports to attract new audiences.

Ad-supported plans have also gained traction, accounting for over 55% of new sign-ups in regions offering this option. Co-CEO Greg Peters emphasized the value of these tiers, noting, “Even after the price increase, [the ad-supported plan] remains a highly accessible entry point for viewers.”

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Netflix projects revenue between $43.5 billion and $44.5 billion and an operating margin of 29% for 2025, up from previous forecasts. The company also announced that it will no longer report quarterly subscriber numbers but will instead share paid membership milestones as they are achieved.

Netflix’s price hike reflects its growing confidence in its content and subscriber loyalty. Despite potential backlash, the company’s record-breaking subscriber additions and robust earnings indicate that its strategy is working. As Netflix continues to innovate with live sports and premium programming, its position at the top of the streaming industry remains unchallenged.