Netflix has announced that it will raise prices on most of its subscription tiers in the US and Canada after the streaming giant reported 19 million new subscribers in the last quarter of 2024.
The sudden increase in subscribers places the streaming giant at 302 million globally, solidifying the company’s hold on the top spot in the industry.
The company on January 21, 2025 reported that its revenue increased 16% last quarter, exceeding $10 billion for the first time in its history, while operating income totaled $2.3 billion, a 52% on-year increase.
Netflix also announced a $15 billion stock buyback. The news sent shares soaring 13% on Tuesday afternoon.
The price increase means the standard monthly membership without advertisements increase from $15.49 to $17.99, while a standard account with ads will rise one dollar to $7.99. Its highest-priced premium tier, which includes 4K video quality, will increase by $2 to $24.99.
“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 said in a statement.
Subscriptions were skyrocketing by with the success of “Squid Game” season two, the platform’s biggest premiere to date, which drew 68 million views in its first week.
Earlier this month, Netflix also added WWE “Raw” live broadcasts on Monday nights.
While some competitors, including Disney and CNN’s parent company Warner Bros. Discovery, have recently reached profitability in the streaming space for the first time, the rivals have struggled to match Netflix’s market share.
“We are fortunate that we do not have distractions like managing declining linear networks and, with our focus and continued investment, we have good and improving product/market fit around the world,” Netflix said in its earnings report.
The price hike is the latest for consumers as streaming services increasingly ratchet up monthly costs and push subscribers toward lower-priced ad-supported plans to increase profitability. In recent years, Disney, Max, Peacock, Apple and others have all raised their prices. Netflix last increased the price of its standard plan in 2022.
