Netflix has boosted US subscriber prices, citing the success of ‘Squid Games’ and the NFL’s Paul-Tyson fight.
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Netflix subscribers will see a significant jump in their monthly subscription fees, with the streaming company enjoying a new audience.
In a letter to shareholders on Tuesday, the company announced price increases on most plans in the US, Canada, Portugal and Argentina.
Standard monthly memberships jumped by a dollar, to $7.99 a month, according to Gregory K. Peters, co-CEO, president and director of Netflix.
Lucas Bahdi and Armando Casamonica fought on Netflix Time: Jake Paul vs. Mike Tyson at AT&T Stadium in 2011. November 15, 2024 in Arlington, Texas. (Sarah Stier/Getty Images for Netflix/Getty Images)
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Ad-free memberships add more than two dollars, up to $17.99 a month, Peters said. Premium subscribers will have to shell out an additional two dollars per month, bringing the monthly fee to $24.99.
Peters described the company’s new pricing as “very accessible.”
“In many markets in EMEA and APAC and LatAm, you’ve seen us hold prices in most of the plans and announcements over the last two quarters. And the changes have gone smoothly,” Peters said. “We certainly look forward to these latest changes.
“Our starting price — $7.99 in the US, $17.99 standard with ads in Canada — is an incredible entertainment value and I think it’s worth noting and repeating that we believe it’s a very accessible entry point.”
The new prices are already reflected on the streaming service’s website.
In this photo taken on January 20, 2022, the Netflix logo appears on a TV remote control. (Reuters/Dado Ruvic/Reuters)
Netflix saw an impressive 19 million new subscribers in the fourth quarter, contributing to a total of 302 million subscribers worldwide.
Live events, including the 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 televised sporting event of all time and featured two of the most televised NFL games in history on Christmas Day.
| Ticker | Security | last one | Change | change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 869.68 | + 11.58 |
+1.35% |
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Theodore A. Sarandos, CEO, president and director, said the basic economics of full-season big league sports are challenging, but if there was a way to make it work, Netflix would explore it.
The company also saw success in the second season of its Squid game, which garnered nearly 166 million views.
Other top-performing shows included: The Diplomat season 2 with 21.4 million views, Cena with 16.2 million views, The Empress season 2 with 21 million views, The Outer Banks season 4 with 36.8 million views, The Lincoln Lawyer season 3 with 33.9 million views. and and Virgin River season 6 with 27.5 million views.
LOS ANGELES, CA – JUNE 12: (LR) Netflix CEO Ted Sarandos and Lee Jung-jae attend the “Squid Game” at the Netflix FYSEE event held at Raleigh Studios Hollywood in Los Angeles, California. (Photo by Charlie Galay/Getty Images for N (Harley Gallagher/Getty Images for Netflix/Getty Images)
The leader announced that the company currently earns only 6 percent of the revenue in the countries and departments it serves.
By improving and expanding its offerings, the company hopes to increase its share every year.
“As we continue to invest in programming and deliver added value to our members, we occasionally ask members to pay a little more so that we can reinvest in making Netflix even better,” investors were told in the letter.
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Revenue in the fourth quarter rose 16% year over year to $10.25 billion, according to company data. The $15 billion stock buyback was up 13 percent Tuesday afternoon.
