Netflix has decided to increase its prices for some of its subscribers, having registered 18.9 million new customers in the last three months of 2024.
The price increases will affect users in the United States, Canada, Portugal and Argentina. The platform has not yet clarified whether the UK will see similar increases.
So, in the US, the price of the standard monthly subscription with ads will increase to $7.99 (£6.49), while the standard plan without ads will increase to $17.99 (£14.60) and the premium plan will top out at $22.99 (£18.66). In the case of the UK, the current prices are £4.99 for a standard subscription with advertising, £10.99 for a standard subscription without advertising, and £17.99 for a premium account.
At the end of 2024, Netflix had more than 300 million subscribers, an increase of 41 million compared to 2023. This figure far exceeds its previous record from 2020, where the platform recorded 36.6 million subscribers. subscribers, a period during which confinements due to the pandemic had encouraged people to turn to the streaming giant for entertainment.
Following the announcement of this subscriber increase, Netflix shares jumped 14%.
The increase is largely attributed to the broadcast of a fight between YouTube star Jake Paul and former world boxing champion Mike Tyson, as well as the broadcast of two National Football League games on Christmas Day.
According to Forrester Research analyst Mike Proulx, live programming is quickly becoming a “secret ingredient” for Netflix, allowing it to strengthen its position against its competitors. “With more choice than ever, streaming services need to differentiate themselves,” he said. “Fear of missing out (FOMO) is a powerful tool to generate interest and loyalty.”
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Over the period of the last three months of 2024, Netflix generated profits of $1.9 billion, or $4.27 per share, almost double from the previous year.
Netflix seems confident that these price increases will not cause a backlash leading to mass cancellations.
“When you’re asking for a price increase, it’s critical to have the content and engagement to justify it,” Netflix co-CEO Ted Sarandos said on a conference call with analysts.
Netflix has been contacted for comment.
As part of these pricing adjustments, it would be interesting to ask whether consumers are willing to pay more for live and exclusive content. What impact will this have on consumer habits in a constantly evolving sector? The answer to this question could well shape the future of streaming platforms.
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