Netflix announced it would be adjusting its pricing for most plans in the United States, Canada, Portugal and Argentina on Tuesday—news that came as the streaming service announced it added almost 19 million new subscribers in the fourth quarter.
The Netflix logo is displayed at the entrance to Netflix Albuquerque Studios film and television production studio lot in Albuquerque, New Mexico on Oct. 13, 2023.
AFP via Getty Images
Key Takeaways
- Netflix confirmed it would be “adjusting prices” on most of its plans in its shareholder letter released Tuesday, saying the company “will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
- The company’s ad-supported tier will increase one dollar from $6.99 to $7.99, the standard tier will go from $15.49 to $17.99 and the premium tier will increase $2 from $22.99 to $24.99, CNBC and Variety reported.
- The last time Netflix raised prices in the U.S. was October 2023, when some plans saw increases ranging from $2 to $3.
- The shareholder letter said its Q4 lineup exceeded its expectations, specifically citing “Squid Game” season two, which it said is on track to become Netflix’s most watched original series season, and its entrance into sports and live events, naming the Jake Paul vs. Mike Tyson as the “most-streamed sporting event ever” and the two Christmas day NFL games as the most-streamed NFL games in history.
- Netflix’s share price was up more than 14% in after-hours trading, rising to $995.30 as of 3:20 p.m. EST after closing the day at $869.68.
- Forbes has reached out to Netflix to confirm the price increases.
Crucial Quote
“When you’re going to ask for a price increase you better make sure you have the goods and the engagement to back it up, and I feel like what we have going into 2025 is just that,” co-CEO Ted Sarandos said in Tuesday’s earnings interview call. “I definitely feel like the strength of slate has never been better.”
Big Number
371.75 billion. That was Netflix’s market capitalization at Tuesday’s close.
Key Background
Netflix offers three paid plans in the U.S.: a standard plan, a standard plan with ads and a premium plan. The standard plan allows for people to watch on two devices at a time in 1080p and download content onto two devices. It also allows people to add one non-household member.
The standard plan with ads does not allow the additional member, has ad breaks and limits access to some content available on standard and premium plans. And the premium plan allows for unlimited ad-free watching on four devices at a time in a higher, 4K quality. Premium plans also allow for two non-household members and use Netflix spatial audio.
The company introduced the ad-supported plan in 2022 and cracked down on password sharing in 2023, both of which helped its subscriber growth. Netflix ended 2024 with 302 million paid members, it revealed in its shareholder letter Tuesday, up from 269.6 million in the first quarter of the year. In 2024 Netflix’s revenue also grew 16% and its operating income exceeded $10 billion for the first time.
Tangent
Netflix has made two Forbes 2025 lists so far: It landed at No. 84 on America’s Dream Employers and No. 189 on Most Trusted Companies in America.
This story was originally published on forbes.com and all figures are in USD.
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