Highlights
- Netflix Price Hike 2025: Following a major jump in subscription numbers, Netflix has decided to raise its prices once again.
- The previous bump in price took place back in October 2023, and now many Western countries will be subject to new changes.
- The main reason for the hike, as stated by Netflix, is to invest and deliver more value through the streaming service.
When it comes to streaming services, Netflix will probably be the first thing that comes to anyone’s mind. The OTT has maintained an amazing lead as a platform, and by disclosing its Q4 2024 earnings, we know that the company has had a wonderful year. Gaining nearly 19 million new subscribers during the last holiday season, Netflix closed off 2024 with over 300 million subscribers globally. They also reported a record annual net addition of 41 million subscribers, and achieved a whopping $1.87 billion profit, with $10.25 billion in revenue during the fourth quarter.
Reason behind Netflix Price Hike
Reportedly, Netflix had its revenue increase by 16% during the last quarter, exceeding $10 billion for the first time in company history. They also announced a $15 billion stock buyback, sending shares up 13%. The reason for such large numbers in subscriptions could be attributed to the addition of many sporting events, the main highlight being the Mike Tyson and Jake Paul boxing match that took place in November. The event alone drew in 108 million viewers worldwide, marking it to be the largest streamed sporting event ever. Netflix also took the initiative to host two Christmas Day NFL games, averaging to about 30 million global viewers. This also made the event the most-streamed football game.
The release and subsequent success of the second season of fan favorite series, Squid Game, also brought in major numbers for the platform. Within the first week of the series’ release it had garnered over 68 million views. Netflix has also added WWE “RAW” to their live broadcast roster, bringing in even more views.
Netflix wrote in a letter to its shareholders, “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. To that end, we are adjusting prices today across most plans in the US, Canada, Portugal and Argentina (which was already factored into the 2025 guidance we provided in October 2024)”.
New prices.
Effective immediately, all plans that were available have had an increase in price. Though not many areas will be included in the change, the United States, Canada, Portugal, and Argentina will be the first that shall receive the hike.
Netflix’s Standard Plan With Ads has received an increase of a dollar, going from $6.99(INR 605.05) to $7.99(INR 691.49) per month. The Standard Plan without Ads has risen from $15.49(INR 1338.89) to $17.99(INR 1,554.98) per month, while the Premium Tier, offering the most simultaneous and 4K streams, has been changed from $22.99(INR 1,987.17) to $24.99(INR 2160.99) per month.
Also, adding an extra member to a non-ad plan will cost $8.99(INR 777.06), as opposed to the previous $7.99(INR 690.62), while there is no change to the cost of adding a member to a plan with ads, currently at $6.99(INR 605.05). Note that the prices mentioned here correspond to the changes made in the US and do not apply to Indian consumers. If the changes ever come to India, the price will be increased considering the current value of the subscriptions.
The large increase in paid subscriptions to the platform only cements Netflix’s presence and dominance in the streaming space. Competitors like Disney and Warner Bros. have all made profits in the OTT business, but they do struggle to match up to Netflix’s market share. Following the return of Squid Game, other anticipated releases, such as the new seasons of Stranger Things and Wednesday, only continue to bolster the company, making sure that profits will follow them far into 2025.
Comments are closed.