Netflix announces price hikes for all US subscribers
Date
1/27/2025 2:53:24 AM
(MENAFN) Shares of Netflix surged by 12 percent in early trading on Wednesday, following the announcement of price hikes for all of its U.S. subscribers. The company revealed that its standard monthly subscription without ads would rise from USD15.49 to USD17.99, while the price of the ad-supported standard plan would increase by USD1, reaching USD7.99.
These price increases coincided with a strong earnings report, marking Netflix's largest subscriber growth in a three-month period since its founding over 25 years ago. In the final quarter of 2024, Netflix gained 19 million new subscribers, pushing its global total to 302 million. The company also saw a 16 percent increase in revenue during this period, surpassing USD10 billion in a single quarter for the first time.
Netflix emphasized that the price adjustments were necessary to continue investing in programming and improving the value it offers to its members. The company expressed that the increases would help fund further enhancements to the streaming service, ensuring continued reinvestment in content creation.
This move by Netflix follows similar actions by other streaming giants. In August, Disney raised prices for its streaming platforms Disney+, Hulu, and ESPN+ by USD1 to USD2 each. Additionally, Warner Bros. Discovery's Max platform increased the price of its ad-free membership by USD1 per month earlier in the year.
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