Netflix has announced price hikes for its subscription plans in several countries, including the United States, Canada, Portugal, and Argentina, following a strong surge in subscriber numbers.
In the last quarter of 2024 alone, the streaming giant reported 18.9 million new users, bringing its total subscriber base to over 300 million. While Netflix has not confirmed if the UK will experience similar price adjustments, current pricing there stands at £4.99 for a standard plan with adverts, £10.99 for a standard plan without ads, and £17.99 for a premium account.
The new pricing in the United States raises the cost of a standard plan with adverts to $7.99, a standard plan without ads to $17.99, and a premium plan to $22.99.
The record-breaking growth of 41 million new subscribers in 2024 far exceeded Netflix’s previous best year in 2020, when pandemic lockdowns contributed to a rise of 36.6 million users.
This success was driven by strategic programming, including the streaming of high-profile live events such as a boxing match between YouTube star Jake Paul and former heavyweight champion Mike Tyson, as well as two National Football League games on Christmas Day. These offerings have been credited with attracting new subscribers and boosting engagement, with Netflix’s stock surging by 14% after the announcements.
Industry experts believe live programming is a key factor in Netflix’s continued dominance. Mike Proulx, an analyst with Forrester Research, noted that live events are helping the platform stand out from competitors.
“With more choice in programming than ever before, streaming services need to differentiate,” Proulx said. “FOMO (fear of missing out) is a powerful tool in piquing interest and creating stickiness.” By leveraging live content, Netflix has created a unique appeal that keeps audiences engaged and loyal, even as competition in the streaming space intensifies.
Netflix’s financial performance in the final quarter of 2024 reflects its strong position. The company earned $1.9 billion, or $4.27 per share, nearly doubling its profits from the same period in 2023.
The company’s leadership remains confident that the price increases will not result in significant subscriber cancellations. Co-CEO Ted Sarandos emphasized that Netflix’s robust content lineup and strong viewer engagement justify the higher prices.
“When you’re going to ask for a price increase, you better make sure you have the goods and the engagement to back it up,” Sarandos said during a call with analysts.
Despite the price hikes, Netflix continues to cement its reputation as a leader in streaming innovation. By blending its extensive catalog of original programming with live event offerings, the platform has tapped into a unique formula for success.
The integration of live sports and entertainment not only appeals to a broader audience but also reinforces its ability to keep viewers invested. Analysts expect Netflix to continue expanding its live programming strategy in the coming years to maintain its edge in the competitive streaming landscape.
As Netflix enters 2025, the company’s strategic decisions, including price adjustments and innovative programming, reflect a clear focus on growth and sustainability.
With more than 300 million subscribers and a diversified content portfolio, Netflix has positioned itself as a dominant force in global entertainment. The company’s ability to navigate market challenges and capitalize on emerging opportunities underscores its commitment to delivering value to both its audience and stakeholders.
