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Netflix subscribers will see a noticeable jump in their monthly subscription fees, as the streaming company celebrates new viewership.
In a letter to shareholders on Tuesday, the company announced that it had increased prices on most plans in the United States, Canada, Portugal and Argentina.
Standard monthly memberships jumped $, to $7.99 per month, according to Gregory K. Peters, co-CEO, president and director of Netflix.
Lucas Bahdi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson at AT&T Stadium on November 15, 2024 in Arlington, Texas. (Sarah Steer/Getty Images for Netflix/Getty Images)
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Peters said ad-free memberships will increase by more than $2, up to $17.99 per month. Premium subscribers will have to pay an additional $2 per month, bringing the monthly fee to $24.99.
Peters described the company’s new prices as “very accessible.”
“You’ve seen us raise prices across a number of markets in EMEA, Asia Pacific and Latin America over the last two quarters across most plans including advertising as well. These changes have gone smoothly,” Peters said. “We certainly expect the same for these latest changes.
“I think it’s worth mentioning and repeating that we believe our starting price — $7.99 in the U.S., $17.99 in Canada for the standard price with ads — represents incredible entertainment value and an accessible entry point.”
The new prices are already reflected on the streaming service’s website.
The Netflix logo is seen on a TV remote in this illustration taken on January 20, 2022. (Reuters/Dado Rovik/Reuters)
Netflix saw a whopping 19 million new subscribers in Q4, contributing to a total of 302 million subscribers globally.
Live events, including a Jake Paul vs. Mike Tyson fight and two NFL matches, have contributed to the company’s recent success, according to leadership.
The fight was the most-streamed sporting event of all time, and on Christmas Day, the platform delivered the two most-streamed NFL games in history.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| NFLX | Netflix company | 869.68 | +11.58 |
+1.35% |
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Theodore A. noted: Sarandos, co-CEO, president and director, noted that the basic economics of full-season major league sports are challenging, but if there is a way to make it work, Netflix will explore it.
Additionally, the company saw success with the second season of its original series Squid Game, which garnered nearly 166 million views.
Other top-performing shows included: The Diplomat Season 2 with 21.4 million views, Senna with 16.2 million views, The Empress Season 2 with 21 million views, Outer Banks Season 4 with 36.8 million views, The Lincoln Lawyer Season 3 with 33.9 million views, and Virgin River Season 6 with 27.5 million views.
LOS ANGELES, CA – JUNE 12: (LR) Netflix CEO Ted Sarandos and Lee Jung-jae attend the Netflix FYSEE event for “Squid Game” at Raleigh Studios Hollywood on June 12, 2022, in Los Angeles, California. (Photo by Charlie Gallay/Getty Images for N (Harley Gallay/Getty Images for Netflix/Getty Images)
Leadership noted that the company only captures 6 percent of revenue opportunities in the countries and sectors it currently serves.
By improving and expanding its offerings, the company hopes to increase share every year.
“As we continue to invest in programming and deliver more value to our members, we will occasionally ask our members to pay a little more so we can reinvest to further improve Netflix,” investors were told in the letter.
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Revenue in the fourth quarter jumped 16% year over year, to $10.25 billion, according to company data. A $15 billion stock buyback sent shares up 13% Tuesday afternoon.