Netflix has announced plans to increase subscription prices in the United States, Canada, Argentina, and Portugal following a strong end to 2024, during which the streaming giant gained nearly 19 million new subscribers.
The company attributed the price hike to its need to reinvest in content and enhance its platform.
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the streaming firm said in a statement.
In the US, the cost of the standard subscription with no adverts will rise from $15.49 to $17.99 per month, while the ad-supported plan will see a $1 increase, costing $7.99 per month.
The last price adjustment in the US was in October 2023, when Netflix also raised costs for some UK plans. However, the company stated there are currently no plans to increase prices in the UK.
Netflix’s strong performance was driven by high-profile content, including the much-anticipated second season of South Korean drama Squid Game, and sports events like the boxing match between Jake Paul and former heavyweight champion Mike Tyson. The platform also streamed two NFL games on Christmas Day, further boosting its viewership.
The firm reported a net profit of $1.8 billion between October and December 2024, doubling its profits from the same period in 2023. Revenue also increased, climbing from $8.8 billion to $10.2 billion.
Netflix revealed it ended 2024 with over 300 million subscribers, far surpassing analysts’ expectations of adding 9.6 million new users in the last quarter.
Going forward, the company will no longer report quarterly subscriber growth and will instead announce milestones as they are achieved.
Looking ahead, Netflix is diversifying its programming with more live events, including WWE wrestling and exclusive rights to the FIFA Women’s World Cup in 2027 and 2031.
Paolo Pescatore, a technology analyst at PP Foresight, said Netflix’s decision to raise prices reflects its confidence in its “stronger and more diversified programming slate compared to rivals.”
