Netflix is raising its subscription prices in the US, Canada, Argentina, and Portugal despite adding nearly 19 million subscribers in late 2024. But why are Netflix subscription costs are increasing despite this increase in subscribers.
“We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” a statement from the streaming platform had said.
Netflix has previously announced “better-than-expected” subscriber numbers, boosted by the second series of South Korean drama, Squid Game as well as sports including a boxing match between influencer-turned-fighter Jake Paul and former world heavyweight champion Mike Tyson.
The Netflix Subscription Fee Increase
In the US, Netflix prices will increase across almost all plans, including the standard subscription with no adverts which will now cost $17.99 (£14.60) a month, up from $15.49. Its membership with adverts will also rise, by one dollar to $7.99.
The last time Netflix raised prices in the US was in October 2023, when it simultaneously lifted costs for some plans in the UK.
Asked if prices were set to increase in the UK, a spokesperson for Netflix remarked “there is nothing to share right now”.
Meanwhile, the streaming company said it closed 2024 with over 300 million subscribers in total. It had been expected to add 9.6 million new subscribers between October and December but it greatly surpassed that number.
New Changes for Netflix
Netflix has announced that this will be the last time it will report quarterly subscriber growth – from now on, it said it will “continue to announce paid memberships as we cross key milestones”.
Paolo Pescatore, a technology analyst at PP Foresight, has said Netflix “is now flexing its muscles by adjusting its subscription prices given its far stronger and diversified programming slate compared to rivals”.
Netflix’s net profit between October and December 2024 doubled to $1.8bn compared to the same period in 2023. The dreaming platform’s sales rose from $8.8bn to $10.2bn.
Conclusion
As Netflix’s subscription prices in the US, Canada, Argentina, and Portugal increased, the question to ask dear readers is, will Netflix subscription prices go up in Nigeria? Only time will tell.
