Netflix announced on Tuesday that it will increase prices for most of its subscription tiers in the United States and Canada following a record-breaking quarter in subscriber growth. The company reported a gain of 19 million new subscribers during the final quarter of 2024, its largest-ever quarterly increase, bringing its global subscriber total to 302 million. This achievement further cements Netflix’s position as the leader in the streaming industry.
The surge in subscribers was driven in part by major live events hosted on the platform, including the highly anticipated Mike Tyson and Jake Paul boxing match in November, which drew 108 million viewers worldwide. Netflix stated that this was the most-streamed sporting event in history. Additionally, the service broadcast two Christmas Day NFL games that averaged 30 million global viewers each, setting records for the most-streamed football games ever. Other drivers of subscriber growth included the release of Squid Game season two, which became Netflix’s biggest series premiere, attracting 68 million views in its first week, as well as the addition of WWE Raw live broadcasts on Monday nights.
As part of its efforts to reinvest in content and programming, Netflix announced price hikes for most of its subscription plans. The standard ad-free plan will increase from $15.49 to $17.99 per month, while the ad-supported standard plan will rise from $6.99 to $7.99. The premium tier, which includes 4K streaming, will jump by $2 to $24.99 per month. These increases follow a broader trend among streaming services to raise prices and encourage subscribers to choose lower-cost, ad-supported plans to improve profitability. Netflix last raised the price of its standard plan in 2022.
The company justified the increase in a letter to investors, stating, “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 re-invest to further improve Netflix.”
Netflix are once again raising their prices in the U.S.
• The ad-supported tier will cost $7.99/month, an increase of $1/month
• The Premium tier will cost $24.99/month, an increase of $2/month pic.twitter.com/Eh7m6KeuDK
— DiscussingFilm (@DiscussingFilm) January 21, 2025
Financially, Netflix reported a 16% increase in revenue during the quarter, reaching $10 billion for the first time in its history. Operating income rose to $2.3 billion, a 52% increase compared to the same quarter last year. The company also announced a $15 billion stock buyback, a move that contributed to a 13% surge in its stock price on Tuesday.
During an investor call, Netflix co-CEO Ted Sarandos highlighted the platform’s recent successes with live events, including the boxing match, NFL games, and the release of major series like Squid Game. Sarandos noted that the company is committed to exploring live events and sports as part of its growth strategy, emphasizing their role in driving engagement and attracting subscribers.
“If there was a path where we could actually make the economics work, for both us and the league, we certainly would explore,” Sarandos said, referencing the possibility of expanding Netflix’s investment in sports programming. “Right now, we believe that the live events business is where we really want to be, and sports is a very important part of that.”
Netflix also announced that this will be the last quarter it provides paid subscriber updates on a quarterly basis. Going forward, the company plans to release a twice-yearly “engagement report” that will include updates on its user base.
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Learn more here: https://t.co/smpVxfwHFu pic.twitter.com/dkrXy6pXZd— News 8 WROC (@News_8) January 22, 2025
The success reported in Netflix’s earnings further solidifies its dominance in the streaming market. While competitors like Disney+ and Max have begun to reach profitability, they have struggled to match Netflix’s global market share. In its earnings statement, Netflix highlighted its singular focus on streaming, noting that it does not face the challenges associated with managing declining cable and broadcast networks, which continue to affect traditional media companies.
With its record subscriber growth and strong financial performance, Netflix remains the leader in a competitive and evolving streaming landscape.
