Subscribers to Netflix are in for a price increase as the streaming giant rolls out new monthly fees for its ad-free and ad-supported tiers. The cost for ad-free viewing will increase to $17.99, reflecting a $2.50 (16.1%) jump from the previous $15.49. The ad-supported plan is set to rise by $1, bringing its monthly fee to $7.99 – an increase of 14.3%.
Additionally, Netflix’s premium tier, which offers ultra-high-definition 4K streaming, will see its price increase by $2 to $24.99, amounting to an 8.7% rise. This marks the second price hike within just a few months, as the last adjustment occurred in October 2023. The company appears confident in its decision, having recently released robust quarterly earnings that likely influenced the price adjustments.
“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 we can reinvest to further enhance Netflix.” - Netflix
Netflix's fourth-quarter report showed a record revenue of $10.25 billion, marking the first time the platform surpassed $10 billion in a single quarter. The company's net income reached $1.87 billion, equating to $4.27 per share, with subscriber numbers climbing to 302 million globally – a 15.9% increase from the prior year. The success of popular shows like the second season of "Squid Game," which attracted 68 million viewers within its first week, played a significant role in this growth.
Moreover, the streaming service anticipates continued success, especially after setting records for the most streamed sporting event and NFL playoff games last December. Due in part to these price hikes, Netflix projects revenue of $10.4 billion for the current quarter, signifying an 11.2% increase compared to the previous year. The forecast for net income in Q1 2025 is expected to hit $2.44 billion.
For the entirety of 2025, Netflix lifted its revenue guidance to a range of $43.5 to $44.5 billion, surpassing prior estimates by $500 million. Fans can look forward to the return of hit shows such as "Squid Game," "Wednesday," and "Stranger Things" in the upcoming year. Following the positive earnings report, Netflix shares surged by $125.12, or 14.4%, concluding after-hours trading at $994.80.
