Netflix is raising prices for some subscribers as it reported 18.9 million new customers in the last three months of 2024.
Prices will rise for users in the United States, Canada, Portugal and Argentina. Netflix has not confirmed if the UK will see any similar price increases.
In the United States a standard monthly plan with adverts will rise to $7.99 (£6.49), a standard plan without ads will increase to $17.99 (£14.60) and a premium plan has gone up to $22.99 (£18.66).
The price in the UK currently stands at £4.99 for a standard monthly plan with adverts, £10.99 for standard without ads, and £17.99 for a premium account.
Netflix ended last year with more than 300 million subscribers – an increase of 41 million from 2023. This eclipsed its previous best year, 2020, which saw it add 36.6 million subscribers as pandemic lockdowns saw people turn to the streaming giant for entertainment.
After it announced the increase in users, Netflix’s shares surged by 14%.
The increase in numbers is widely credited to Netflix’s streaming of a fight between YouTube sensation Jake Paul and former heavyweight boxing champion Mike Tyson, as well as two National Football League games on Christmas Day.
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Forrester Research analyst Mike Proulx says live programming is quickly becoming Netflix’s “secret ingredient” that is helping to widen its lead over its streaming rivals.
“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.”
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In the final three months of 2024, Netflix earned $1.9bn, or $4.27 per share, nearly doubling from the same time in 2023.
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Netflix appears confident the price increases will not trigger a backlash resulting in mass cancellations.
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“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,” Netflix co-CEO Ted Sarandos said during a conference call with analysts.
Netflix has been contacted for comment.
