Undoubtedly, the fourth quarter for Netflix will be remembered by subscribers, investors, and the company itself, as every aspect of the business–earnings, stock and subscriptions–saw significant growth.
On Tuesday Netflix announced plans to raise its subscription fee. the price hike will not apply globally, but specifically to the subscriber but in the US, Canada, Portugal, and Argentina.
The new monthly Netflix subscription plans will be as follows: the standard ad-supported plan will increase to $7.99, up from $6.99; the standard ad-free plan will rise to $17.99, up from $15.49; and the premium plan will now cost $24.99, up from $22.99. These price changes will take effect in the next billing cycle.
Netflix has justified this hike in a letter to investors, stating “As we continue to invest in programming and deliver more value for our members, we will occasionally as our members to pay a little more so that we can re-invest to further improve Netflix”
After more than a years, Netflix is revising its subscription fees, making its first price hike since October 2023. The standard ad-supported plan has seen a $1 hike, the first time increase since it launch in 2022.
Another milestone achieved by the video streaming giant is the addition of around 19 million new subscribers, bringing its total to above 300 million worldwide, placing the platform on top of the list of stream services.
The fourth quarter’s addition of new subscribers to the platform is largely attributed to its live events. Notably, last year’s Mike Tyson vs. Jake Paul boxing match attracted 108 million viewers worldwide, making it one of the most live-streamed event in the history of sports. Additionally, Squid Game season 2 earned 68 million views in its first week, while two Christmas Day NFL games the Chiefs vs. Steelers and the Ravens vs. Texans–together pulled in about 30 million views.
Netflix also reported that its revenue surged by 16% in Q4 2024, reaching $10.25 billion, making it one best quarters in the company’s history. The company also announced a stock buyback of worth $15 billion, this news led to a 13% in its stock prices.