In a recently published financial report at https://s22.q4cdn.com/959853165/files/doc_financials/2024/q4/FINAL-Q4-24-Shareholder-Letter.pdf for the fourth quarter of 2024, Netflix reported record revenue of $10.25 billion and 19 million new subscribers, with more than 300 million paying members across the world. The streaming service also took the opportunity to announce the next price increase, which will initially only affect customers in the United States, Canada, Portugal and Argentina.
The standard ad-supported subscription, which allows users to watch content in 1080p, will cost $7.99 in the US, up from $6.99 currently. The standard ad-free subscription will cost $2.50 more, going from $15.49 to $17.99. The price of the premium 4K plan will increase from $22.99 to $24.99. Netflix plans to invest more in live event streaming after the boxing match between Jake Paul and Mike Tyson saw record daily registrations. The company serves ads to all viewers during live events, including those who have purchased a higher-tier subscription.
This is one of the ways Netflix uses to increase its revenue. The company aims to make advertising a significant source of revenue for the streaming service from 2026. According to Netflix, in the twelve countries where an advertising component is offered, the majority of customers would choose this type of subscription. Netflix is therefore confident of being able to satisfy the needs of its advertising partners even before the end of 2025.
Unfortunately, it is not yet clear when exactly the pricing changes mentioned above will be introduced.
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