Netflix to raise prices as new subscribers soar

Netflix, the well-known streaming service, has recently made headlines by announcing a price increase for its subscriptions in several countries. This decision comes after the company reported a significant surge in subscribers, adding nearly 19 million new members in the last months of 2024. A major factor contributing to this growth was the release of the second season of the popular South Korean drama, Squid Game. In addition to this hit series, Netflix also attracted viewers with high-profile sports events, including a boxing match featuring influencer Jake Paul and former heavyweight champion Mike Tyson. The price hikes will affect subscribers in the United States, Canada, Argentina, and Portugal, while Netflix has not provided any updates regarding potential changes in the UK. nnIn the United States, the price for the standard subscription plan, which does not include advertisements, will increase from $15. 49 to $17. 99 per month. Additionally, the subscription plan that includes advertisements will see a rise of one dollar, bringing its cost to $7. 99. This marks the first price increase for Netflix in the US since October 2023, when they also raised prices for some plans in the UK. Netflix has stated that they occasionally need to ask their members for a little more money to reinvest in the platform and enhance the overall viewing experience. nnAs of the end of last year, Netflix boasted over 300 million subscribers worldwide, far exceeding their expectations of adding 9. 6 million new subscribers between October and December. This impressive growth has led Netflix to change how they report subscriber numbers. Moving forward, they will no longer provide quarterly updates on subscriber growth but will instead announce paid memberships as they reach significant milestones. In addition to the success of Squid Game and the Paul vs. Tyson fight, Netflix also streamed two NFL games on Christmas Day. The company has plans to broadcast more live events, including WWE wrestling, and has secured the rights to air the FIFA Women's World Cup in 2027 and 2031. Technology analyst Paolo Pescatore noted that Netflix is 'flexing its muscles' by adjusting prices, thanks to its strong and diverse programming compared to its competitors. The company's net profit for the last quarter of the year doubled to $1. 8 billion, while sales increased from $8. 8 billion to $10. 2 billion.