Netflix has announced price increases for its subscription plans in the United States and several other markets, following a substantial surge in subscribers that brought its total membership count to 302 million by the end of 2024, the Washington Post reports.
The streaming giant added 19 million subscribers during the fourth quarter, spurred by popular releases such as the second season of Squid Game and live sports programming, including NFL games and a high-profile boxing match between Mike Tyson and YouTuber-turned-boxer Jake Paul.
For US customers, Netflix has adjusted pricing across most plans. The ad-supported tier rose from $6.99 to $7.99 per month, while the standard plan increased from $15.49 to $17.99. The premium, ad-free plan — allowing up to four concurrent streams — saw a $2 hike, bringing its cost to $24.99 per month. Similar price adjustments were introduced in Canada, Portugal, and Argentina.
In a statement to shareholders, Netflix explained the rationale for the price increases:
“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 reinvest to further improve Netflix.”
The company reported an annual operating income exceeding $10 billion in 2024, marking the first time it achieved this milestone. Revenue growth for the year reached 16%, and Netflix projected an optimistic outlook for 2025, with expected revenue of $43.5 billion to $44.5 billion — equating to 12-14% year-over-year growth.
This marks a significant turnaround from 2022, when Netflix experienced its first subscriber decline in a decade and faced skepticism about its growth potential amid an increasingly competitive streaming landscape.
In its earnings report, Netflix highlighted various strategies to sustain growth and bolster its market position. These include a crackdown on password sharing, the introduction of a lower-cost ad-supported plan, and diversification into mobile gaming and live programming.
The company also underscored its commitment to enhancing content offerings and refining its pricing strategies.
“We have to continue to improve all aspects of Netflix — more series and films our members love, a great product experience, increased sophistication in our plans and pricing strategy (including more advertising capabilities) — and grow into new areas like live programming and games,” Netflix stated.
