Netflix Raises Prices Following Record Subscriber Growth

22nd January 2025 By The Global Heroes Technology

Netflix is increasing subscription prices in the US and Canada after reporting its largest-ever subscriber growth. The streaming giant added 19 million new subscribers in the last quarter of 2024, bringing its global total to 302 million. The surge reinforces Netflix's position as the leading platform in the streaming industry.

The company attributed the remarkable growth to its venture into live sports and blockbuster content. The Mike Tyson vs. Jake Paul boxing match in November drew 108 million viewers worldwide, making it the most-streamed sporting event ever. Additionally, Netflix hosted two NFL games on Christmas Day, attracting an average of 30 million viewers each, setting a new record for football streaming. The premiere of *Squid Game* season two became the platform's most successful debut, garnering 68 million views in its first week. Further bolstering subscriptions, Netflix began streaming live WWE *Raw* events on Monday nights.

Effective immediately, subscription prices will increase: the standard plan without ads will rise from $15.49 to $17.99, the standard plan with ads will increase by $1 to $7.99, and the premium tier with 4K video will jump by $2 to $24.99. In a letter to investors, Netflix explained the price hike as necessary for continued investment in high-quality programming.

This move follows an industry trend of rising streaming costs, with Disney, Max, and others implementing similar increases. Netflix last raised its standard plan price in 2022. Despite the higher costs, Netflix reported a 16% revenue increase last quarter, exceeding $10 billion for the first time, alongside a 52% rise in operating income to $2.3 billion. The company also announced a $15 billion stock buyback, causing shares to climb 13% on Tuesday.

Co-CEO Ted Sarandos highlighted the success of live events as a key growth driver. “In an amazing quarter where we had three huge live events, we delivered incredible success with *Squid Game* season two and groundbreaking sports programming,” Sarandos said. He hinted at future investments in live sports and events, provided the economics align with the company's goals.

Notably, Netflix will no longer report quarterly subscription figures, transitioning to a biannual engagement report. As legacy media companies invest heavily in streaming to counter declining cable viewership, Netflix remains at the forefront of the industry.