Netflix announced a price increase for most of its subscription tiers in the US and Canada on Tuesday.
"Netflix added 18.9 million subscribers in its holiday quarter. … Netflix said its fourth-quarter programming slate surpassed its internal expectations, with the Jake Paul vs. Mike Tyson boxing match becoming the most-streamed sporting event." – @Reuters https://t.co/qeZmA4JQ40
— Adam Stern (@A_S12) January 21, 2025
This comes after the streaming giant reported adding 19 million new subscribers in the last quarter of 2024, its largest-ever increase. Netflix’s global subscriber count now stands at 302 million, solidifying its position as the leading streaming service.
The substantial subscriber growth is attributed to several successful events and series premieres.
Netflix added half a Peacock's worth of subscribers last quarter. https://t.co/04q65udRzK
— Alex Weprin (@alexweprin) January 21, 2025
The Mike Tyson versus Jake Paul event in November captured 108 million viewers worldwide, making it the most-streamed sporting event ever. Netflix also hosted two NFL games on Christmas Day, which averaged 30 million global viewers and became the most-streamed football games in history.
300 million paid subscribers for Netflix is insane, with a total audience of 700 million https://t.co/kaxZ9Zs5HT pic.twitter.com/E4eromOQra
— Alex Kantrowitz (@Kantrowitz) January 22, 2025
The premiere of “Squid Game” season two contributed to the platform’s success, drawing 68 million views in its first week. Earlier this month, Netflix enhanced its content library by adding WWE “Raw” live broadcasts on Monday nights. Under the new pricing structure, the standard monthly membership without advertisements will increase from $15.49 to $17.99, while a standard account with ads will rise by one dollar to $7.99.
The premium tier, which includes 4K video quality, will see an increase of $2 to $24.99.
Netflix's sports coverage helped drive a record 19 new million subscribers last quarter.https://t.co/Lur7qx8BXk pic.twitter.com/xu2qHPyZBK
— Sports Business Journal (@SBJ) January 21, 2025
netflix leads with subscriber surge
in a letter to investors, Netflix stated, “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.
The price hike is part of a broader trend where streaming services are raising monthly costs and nudging subscribers towards lower-priced, ad-supported plans to enhance profitability.
Other major streaming platforms like Disney+, Max, Peacock, and Apple TV have also recently increased their prices. Netflix last raised the price of its standard plan in 2022. Netflix’s latest financial report revealed a 16% revenue increase last quarter, surpassing $10 billion for the first time in the company’s history.
Operating income also rose, totaling $2.3 billion — a 52% year-on-year increase. The company further announced a $15 billion stock buyback, leading to a 13% rise in share prices on Tuesday afternoon. On an investor call, Netflix co-chief executive Ted Sarandos highlighted the company’s recent achievements in live sporting events and indicated that the company will continue to explore growth opportunities in live events and sports.
Starting next year, Netflix will release a semi-annual “engagement report” with updates on viewership metrics instead of disclosing its paid membership figures on a quarterly basis. As legacy media companies continue to invest heavily in their own streaming platforms to compete, Netflix’s latest results underscore its dominance. The company stated in its earnings report, “We’re fortunate that we don’t have distractions like managing declining linear networks, and with our focus and continued investment, we have good and improving product/market fit around the world.
This move cements Netflix’s standing as the top player in the streaming industry, setting a high bar for its competitors.
