New increase coming for Netflix subscriptions

Wednesday 22nd January 2025 09:29 PM

Resuming its bad habits from previous years, Netflix took advantage of its latest results to announce a new increase in the prices of its subscriptions in several countries, notably in the United States, Canada, Portugal and Argentina. This decision, which comes following record financial performances, may not be very well received by users.

Record financial results

These price changes were announced as part of exceptionally good financial results from Netflix for the fourth quarter of 2024. The platform is very optimistic and expects this growth to continue in 2025, strengthening its dominant position in the streaming market.

The company recorded impressive performance with 19 million new subscriberssetting a quarterly record. To this is added revenue growth of 16%driven by a subscriber base now exceeding 300 million worldwide.

…but a new price list

In certain areas, subscriptions should be subject to different increases varied depending on the plans. This increase comes after a previous increase in October 2023. However, this is the first time the ad-supported plan, launched in late 2022, has seen an increase.

This increase will trade through the United States, Canada, Portugal and Argentina. And based on previous ones, it should spread in successive waves to the rest of the world. France would therefore very probably be affected in the weeks or months to come…

• Standard with ads: the cheapest plan increases from $6.99 to $7.99 per month in the United States, an increase of $1.
• Standard: Price increases from $15.49 to $17.99 per month, still offering 1080p HD video.
• Premium: The cost increases from $22.99 to $24.99 per month, which remains the only plan that includes 4K streaming.

But why?

In a press release, Netflix explained the reasons for this increase by the need to always offer better (a little easy, no?): As we continue to invest in programming and deliver more value to our members, we will sometimes ask our members to pay a little more so we can reinvest to make Netflix better.

In other words, the company intends to use these funds to further develop its content catalog and improve the user experience, while remaining competitive facing rival platforms like Disney+, Max or Amazon Prime Video. If the platform highlights the added value of its investments, this increase may not please all subscribers.

In a context where the prices of streaming services are increasing regularly, some users might be tempted to reduce their spending by opting for less expensive plans or exploring other entertainment options. It remains to be seen whether this increase in prices, coupled with an increasingly prominent advertising offering, will be well received in the long term.