Netflix hikes prices for some subscribers despite users spiking over past three months
22 January 2025, 15:47
Netflix is set to hike prices for some of its subscribers again, despite earnings reaching record highs and adding millions more subscribers in recent months.
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The streaming giant hosted the Jake Paul vs Mike Tyson boxing match in November which it said became the most-streamed sporting event in history.
But it revealed it was going to be raising prices across most plans in the US, Canada, Portugal and Argentina.
In the US, the cheapest monthly plan with adverts will increase by one US dollar to 7.99 US dollars (£6.46).
Netflix told investors that it will "occasionally ask our members to pay a little more so that we can reinvest to further improve" the platform.
It did not confirm whether there would be a similar price increase for UK subscribers.
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The California-based business made 39 billion US dollars (£31.5 billion) in revenues over 2024, up from 33.7 billion US dollars (£27.3 billion) in 2023.
Its operating income soared to 10.4 billion dollars (£8.4 billion), from seven billion dollars (£5.7 billion) the year before, reaching a record high.
It ended the year with more than 300 million global subscribers after gaining about 19 million over the final three months of the year.
Popular series such as Bridgerton and Fool Me Once helped bolster the streaming platform after facing a slower start to 2024 following major actor and writers' strikes in the US.
Non-English language shows such as Korean drama Squid Game and Spanish film Society Of The Snow proved popular among subscribers, as well as the US crime drama series Monsters: The Lyle And Erik Menendez Story.
Netflix also said its newly-established live-programming roster was already reeling in viewers, including NFL games on Christmas Day, and that it had recently secured the US rights for the Fifa Women's World Cup in 2027 and 2031.
Dan Coatsworth, investment analyst at AJ Bell, said: "Netflix has proved its success is not waning - it is going from strength to strength and continues to be king of the streaming platforms.
"It's not a surprise that Netflix feels comfortable in raising prices. Customers love its content, so strike while the iron is hot and get them to pay more.
"Netflix has been spreading its wings to offer more diversified content. Sports and games now comfortably sit alongside films and TV shows, making Netflix a broader entertainment hub.
"It means there is something for everyone and the company clearly feels this is worth a higher monthly subscription price."
