Netflix has announced a price hike for its subscription services in the United States, Canada, Argentina, and Portugal following an impressive addition of nearly 19 million new subscribers in the final months of 2024. This surge significantly outpaced expectations, which had forecasted an increase of just 9.6 million subscribers.
In the US, the standard ad-free plan will now cost $17.99 per month, up from $15.49, while the ad-supported tier will increase by a dollar to $7.99. This marks the first price adjustment since October 2023, when similar changes were made in both the US and the UK. When asked about price adjustments in the UK, a Netflix spokesperson stated there was “nothing to share right now.”
The surge in subscribers was attributed to blockbuster content like the second season of the South Korean drama Squid Game and high-profile sports events, including a boxing match between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson. Netflix also streamed NFL games on Christmas Day, further expanding its live event portfolio. Plans are set to include more live content like WWE wrestling and securing broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031.
Financially, Netflix doubled its net profit to $1.8 billion in the last quarter compared to the year before, with sales increasing from $8.8 billion to $10.2 billion. This financial strength has fueled the company’s decision to raise prices, justifying it as a means to reinvest in enhancing the platform’s offerings.
While no immediate price increases are planned for African markets, the global trend might hint at future adjustments. In regions like Nigeria, previous price hikes have been met with resistance due to economic pressures. Introducing or expanding ad-supported plans could be a strategic move for Netflix to cater to price-sensitive consumers in Africa, ensuring they still have access to premium content without a significant cost increase.
Paolo Pescatore from PP Foresight noted that Netflix is now leveraging its strong position with a diversified programming slate to adjust prices. This move is seen as part of a broader strategy to maintain market leadership by investing in varied and high-quality content.
Netflix has decided this will be the last time it reports quarterly subscriber growth, opting instead to announce paid memberships as they cross significant milestones. This shift indicates a focus on long-term growth and stability rather than short-term subscriber fluctuations.
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