After Surge In Users, Netflix Announces Price Hike
After announcing the adding of nearly 19 million subscribers, Netflix also announce price hikes in Argentina, Canada, Portugal and the United States. The streaming giant said it added nearly 19 million subscribers during the holiday season to finish out last year with more than 300 million subscribers. The platform said that it entered 2025 with a strong momentum.
In a letter to the investors, the company said, “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”.
As per the company, premium and standard memberships in the United States will cost $2 more per month, $25 and $18 respectively, while a standard ad-supported tier will be $8 in an increase of one dollar monthly.
Netflix logged profit of $1.87 billion on revenue of $10.25 billion during the final quarter of 2024, which is double in figures from the same period during the year before. Netflix shares jumped more than 14 percent to top $993 in after-market trades.
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“We enter 2025 with strong momentum, coming off a year with record net additions — 41 million — and having re-accelerated growth,” Netflix executives told investors. It was also added that Netflix is in a “leadership position” when it comes to engagement, with about two hours daily per paid member.
“Our business remains intensely competitive with many formidable competitors across traditional entertainment and big tech,” Netflix executives said.
“We have to continue to improve all aspects of Netflix — more series and films our members love, a great product experience, increased sophistication in our plans and pricing strategy including more advertising capabilities — and grow into new areas like live programming and games”. Netflix further added that growing ad business is one of its top priority this year.
The company also launched an ad-subsidized offering in late 2023 around the same time as a crackdown on sharing passwords.
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The streaming behemoth expects revenue between $43.5-44.5 billion and is targeting a healthy 29 percent operating margin for 2025.
While the dystopian Korean horror tale, Squid Games played huge role in luring subscribers to the platform during the final quarter of last year, Netflix have new seasons of hit shows “Wednesday,” and “Stranger Things” coming up this year.
In the US, Netflix has begun to offer some users combined packages with its one-time rivals, making itself available through joint subscriptions with Peacock and Apple TV.
Netflix is perceived to at the top of video content market, with Disney+ still struggling after a launch in November of 2019 that featured a slew of new content from its blockbuster Marvel and Star Wars universes. Reportedly, Netflix shares have gained 80 percent over the past year, significantly outperforming both the S&P 500 and NASDAQ indices.
