Netflix is raising prices for some subscribers after reporting 18.9 million new customers in the last three months of 2024.
Prices will increase for users in the United States, Canada, Portugal and Argentina. Netflix has not confirmed whether the UK will see similar price increases.
In the US, a standard monthly plan with ads will increase to $7.99 (£6.49), a standard plan without ads to $17.99 (£14.60), and a premium plan to $22.99 ( £18.66).
Pricing in the UK currently stands at £4.99 for a standard monthly plan with ads, £10.99 for a standard plan 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 pushed people to turn to the streaming giant for entertainment.
After announcing the increase in users, Netflix shares jumped 14%.
The increase in numbers is largely attributed 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 matches on Christmas Day.
Mike Proulx, an analyst at Forrester Research, says live programming is quickly becoming Netflix’s “secret ingredient” helping to widen its lead over its streaming rivals.
“With more programming choices than ever before, streaming services need to differentiate themselves,” Proulx said. “FOMO (fear of missing out) is a powerful tool for generating interest and creating stickiness.”
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Over the last three months of 2024, Netflix earned $1.9 billion, or $4.27 per share, almost double compared to the same period in 2023.
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Netflix seems confident that the price increases won’t trigger backlash leading to mass cancellations.
“When you ask for a price increase, you better make sure you have the assets and the commitment to support it,” Netflix co-CEO Ted Sarandos said on a conference call with analysts .
Netflix has been contacted for comment.