Netflix has announced price hikes across its subscription plans in both the United States and Canada, sparking reactions from subscribers.
The increase reflects the company’s ongoing efforts to fund programming investments and sustain its dominant position in the streaming industry.
Naijahitz reports on Wednesday that Netflix will raise prices across several countries after adding nearly 19 million subscribers in the final months of 2024.
In the United States, the standard monthly plan without ads will rise from $15.49 to $17.99, while the ad-supported standard plan will increase by $1 to $7.99.
Meanwhile, in Canada, the standard plan with ads will see a $2 jump, reaching $7.99 per month, and the standard plan without ads will climb by $2.50 to $18.99.
The premium plan in Canada will experience the sharpest increase, with a $3 hike raising 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 U.S. changes follow a similar pattern, impacting all subscribers. However, the fees for adding extra members remain unchanged in Canada.
This price adjustment accompanies an exceptional performance report from Netflix.
In the final quarter of 2024, the streaming giant gained 19 million subscribers, the largest quarterly increase in its 25-year history, propelling its global subscriber base to 302 million. The company also reported a 16% year-over-year revenue growth, crossing $10 billion in a single quarter for the first time.
“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,” the company stated in its letter to shareholders.
Netflix also revealed that prices are being adjusted in other countries, including Portugal and Argentina, signaling a global trend in their pricing strategy.
The company’s recent programming successes have contributed to its financial momentum. 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 such as the holiday movie “Carry On” and a live-streamed boxing match featuring influencer Jake Paul and former heavyweight champion Mike Tyson have also drawn significant viewership.
“It’s great that all these big swings worked very well in the quarter,” Netflix co-CEO Ted Sarandos said during an investor call.
In Canada, prices were last increased in 2022, making the latest adjustments the first in over two years. Netflix says the additional revenue will support its commitment to delivering high-quality, engaging content.
The price hikes 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 the 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, secured four awards, including Best Motion Picture – Musical or Comedy.
As Netflix adjusts prices globally, it continues to invest heavily in programming while navigating 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 on schedule safely, be mindful of folks who need time to work through the challenges of the fires, including, in some cases, loss of life and home,” Sarandos said. “But this industry has been through a really tough couple of years, starting with COVID, going into the strikes, and now this”, he concluded.
