After gaining around 19 million customers in late 2024, Netflix has decided to raise prices in multiple countries worldwide.
According to the streaming company, subscription prices in the United States of America, Canada, Argentina, and Portugal will be raised.
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” according to the announcement.
The second season of the South Korean drama Squid Game and sports programming, such as the boxing bout between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson, contributed to the better-than-expected subscription numbers that Netflix disclosed.
Prices are set to increase for nearly all plans in the United States. This includes the standard membership without ads, which will rise to $17.99 (£14.60) per month, up from the previous rate of $15.49.
Furthermore, the membership fee for advertisements will increase by one dollar, reaching $7.99.
Netflix’s most recent price increase in the United States occurred in October 2023, when the company simultaneously increased pricing for certain plans in the United Kingdom.
When asked about the possibility of an increase in fees in the United Kingdom, a Netflix spokesman said there was “nothing to share right now.”
While this was happening, the corporation announced that it had more than 300 million customers by the end of the previous year. Between October and December, it was anticipated to gain 9.6 million new users, but it exceeded that amount by a significant margin.
Netflix has stated it will “keep revealing paid memberships as we hit significant milestones” in the future. This announcement signifies the last time the company will offer quarterly updates regarding the growth of its subscriber count.
In addition to the Squid Game and the battle between Paul and Tyson, Netflix also broadcast two National Football League games on Christmas Day.
It has also secured broadcasting rights for additional live events, including WWE wrestling and the FIFA Women’s World Cup for 2027 and 2031.
According to Paolo Pescatore, a technology analyst at PP Foresight, Netflix “is now flexing its muscles by adjusting prices given its significantly stronger and more diverse programming slate in comparison to competitors.”
The increase in net profit from October to December was a whopping $1.8 billion compared to the same period in the previous year.
The increase in sales was from $8.8 billion to $10.2 billion.
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Salman Ahmad is known for his significant contributions to esteemed publications like the Times of India and the Express Tribune. Salman has carved a niche as a freelance journalist, combining thorough research with engaging reporting.
