2 min read
The top streaming platform in the world, Netflix, has announced that it will be increasing subscription prices in a number of countries. These countries include Portugal, Argentina, Canada, and the US.
Why the Price Hike?
Netflix explained that the price increase is necessary to fund reinvestment into the platform, improving the user experience for its ever-growing global audience.
- 19 million new users joined Netflix in late 2024, resulting in a significant surge in subscribers.
- Netflix now boasts 300 million paying customers worldwide, solidifying its position as the dominant player in the streaming industry.
Redesigned Pricing System
There will be a price increase for all but one of Netflix’s US subscription choices.
- Ad-supported plan: $7.99/month (up by $1)
- Basic ad-free plan: $15.49 to $17.99/month
- Premium plan: $22.99 to $24.99/month (up by $2)
The governments of Portugal, Argentina, and Canada have also announced price cuts. According to Netflix’s earnings report, these increases are essential to support the company’s continuous efforts to expand its content library and enhance its technology.
In a press release, the company announced “We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix.”
Motives for Expansion
In spite of the price hikes, Netflix’s subscriber growth remains uninterrupted. Major sporting events, such as the much-publicized boxing battle between influencer Jake Paul and former heavyweight champion Mike Tyson, and the release of highly anticipated material, such as the second season of the hit South Korean drama Squid Game, drove the spike in subscriptions.
Netflix has taken steps to broaden its content offering by adding more live events, such as WWE shows, and by securing the rights to broadcast the 2027 and 2031 FIFA Women’s World Cups.
Netflix plans to keep innovating and expanding its products in the future. The streaming giant is launching a new “Extra Member with Ads” package in addition to the price revisions.
As part of their continued effort to discourage password sharing, Netflix will now let ad-supported subscribers add a second user outside of their household for an extra fee.
Even with the price hikes, Netflix is still sure of its place in the market. Instead of reporting subscriber growth every three months, the corporation will instead highlight significant milestones. With worldwide streaming adoption on the upswing, Netflix has more room to grow, as it currently only accounts for 10% of TV viewing in the markets it covers.
