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Netflix subscribers will see a notable increase in their monthly subscription fees, as the streaming company welcomes new audiences.
In a letter to shareholders On Tuesday, the company announced that it had increased prices on most plans in the United States, Canada, Portugal and Argentina.
Standard monthly subscriptions jumped by a dollar, to $7.99 per month, according to Gregory K. Peters, co-CEO, chairman and director of Netflix.
Lucas Bahdi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson at AT&;T Stadium on November 15, 2024 in Arlington, Texas. (Sarah Stier/Getty Images for Netflix/Getty Images)
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Ad-free memberships will increase by more than two dollars, to $17.99 per month, Peters said. Premium subscribers will have to pay two dollars more per month, which will bring the monthly fee to $24.99.
Peters described the company’s new pricing as “highly accessible.”
“You’ve seen us increase prices in a number of markets across EMEA, APAC and Latin America over the last two quarters, for most plans, including ads. And these changes have been smooth sailing.” , Peters said. “We certainly expect the same for these latest changes.
“I think it’s worth noting and reiterating that we believe our starting price – it’s $7.99 in the US, $17.99 in Canada for standard with ads – represents value incredible entertainment and is a highly accessible entry point.
The new prices are already reflected on the streaming service’s website.
The Netflix logo is seen on a television remote control in this illustration taken on January 20, 2022. (Reuters/Dado Ruvic/Reuters)
Netflix added 19 million new subscribers in the fourth quarter, bringing its total to 302 million subscribers worldwide.
Live events including Jake Paul vs. Mike Tyson fight and two NFL games, have contributed to the company’s recent success, according to management.
The fight was the most-streamed sporting event of all time, and on Christmas Day the platform aired the two most-streamed NFL games in history.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 869.68 | +11.58 |
+1.35% |
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Theodore A. Sarandos, Co-CEO, President and Director, highlighted the underlying economics of big league sports all season It’s a challenge, but if there was a way to make it work, Netflix would explore it.
Additionally, the company saw success with the second season of its original series, Squid Game, which garnered nearly 166 million views.
Other top performing shows include: The Diplomat season 2 with 21.4 million views, Senna with 16.2 million views, The Empress season 2 with 21 million views, Outer Banks season 4 with 36.8 million views views, The Lincoln Lawyer season 3 with 33.9 million views and Virgin River season 6 with 27.5 million views.
LOS ANGELES, CALIFORNIA – JUNE 12: (LR) Netflix CEO Ted Sarandos and Lee Jung-jae attend Netflix’s FYSEE event for ‘Squid Game’ at Raleigh Studios Hollywood on June 12, 2022, in Los Angeles, California. (Photo by Charley Gallay/Getty Images for N (Harley Gallay/Getty Images for Netflix / Getty Images)
Management noted that the company only generates 6% of revenue opportunities in the countries and segments it currently serves.
By improving and expanding its offering, the company hopes to increase its share each year.
“As we continue to invest in programming and deliver more value to our members, we will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix,” the investors said in the letter.
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Fourth-quarter revenue jumped 16% year over year to $10.25 billion, according to company data. A $15 billion stock buyback sent shares up 13% Tuesday afternoon.
