Netflix has announced price increases to its subscription plans in both the United States and Canada, prompting reactions from subscribers.
The increase reflects the company's continued efforts to fund investments in programming and maintain its dominant position in the streaming industry.
Tribune online reports Wednesday that Netflix will increase prices in several countries after adding almost 19 million subscribers in the final months of 2024.
In the United States, the standard monthly ad-free plan will increase from $15.49 to $17.99, while the standard ad-supported plan will increase from $1 to $7.99. Meanwhile, in Canada, the standard plan with ads will see a $2 increase, reaching $7.99 per month, and the standard plan without ads will increase by $2.50 to $18.99. The premium plan in Canada will see the biggest increase, with a $3 increase bringing the cost to $23.99.
For Canadian subscribers, the updated rates are effective immediately for new accounts, while existing customers will see the change reflected in their next billing cycle. The changes in the US follow a similar pattern and affect all subscribers. However, the fees for adding additional members remain unchanged in Canada.
This price adjustment is accompanied by a report of exceptional performance from Netflix. In the final quarter of 2024, the streaming giant gained 19 million subscribers, the largest quarterly increase in its 25-year history, boosting its global subscriber base to 302 million. The company also reported 16% year-over-year revenue growth, surpassing $10 billion in a single quarter for the first time.
“As we continue to invest in programming and provide more value to our members, we will occasionally ask them to pay a little more so we can reinvest and make Netflix even better,” the company stated in its letter to shareholders.
Netflix also revealed that prices are being adjusted in other countries, including Portugal and Argentina, indicating a global trend in its pricing strategy.
The company's recent programming successes have contributed to its financial boost. The second season of the hit series “Squid Game” is poised to become Netflix’s most-watched original season in history, while other popular content like the Christmas movie “Carry On” and a live-streamed boxing match featuring the influencer Jake Paul and former heavyweight champion Mike Tyson have also attracted a significant audience.
“It's fantastic that all of these big changes worked very well in the quarter,” Netflix co-CEO Ted Sarandos said during an investor call.
In Canada, prices last increased in 2022, so the latest adjustments were the first in more than two years. Netflix says the additional revenue will support its commitment to delivering high-quality, engaging content.
The price increases are part of a broader trend in the streaming industry. In August, Disney raised subscription fees for Disney+, Hulu and ESPN+, while Warner Bros. Discovery's Max implemented similar increases earlier in the year.
Despite rising costs, Netflix's dominance remains evident. The company led the entertainment industry with 36 Golden Globe nominations this year, and its film “Emilia Pérez,” starring Zoe Saldaña and Selena Gomez, won four awards, including Best Motion Picture – Musical or Comedy.
As Netflix adjusts pricing globally, it continues to invest heavily in programming while facing challenges such as the recent Los Angeles wildfires. Sarandos assured investors that no significant delays in production or cash flow are expected in 2025.
“Our goal is to keep everything safely on schedule, taking into account people who need time to overcome the challenges of the fires, including, in some cases, the loss of life and homes,” Sarandos said. “But this industry has been through a couple of really difficult years, starting with COVID, through the strikes, and now this,” he concluded. (ABC NEWS, NATIONAL POST)
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