Netflix has once again adjusted its subscription prices in the United States, Canada, Portugal, and Argentina. The price hike applies to all plans, including the ad-supported option.
This announcement was made on Tuesday (Jan 21), alongside Netflix’s Q4 2024 financial report, which revealed a subscriber growth of 18.9 million during the quarter, according to Variety.
New Pricing Details
In the United States, the Standard plan without ads has increased by $2.50, from $15.49 (around IDR 252,000) to $17.99 (approximately IDR 292,000) per month. This marks the first price increase for this plan in three years. The Standard plan allows streaming on two screens in HD quality.
Meanwhile, the ad-supported plan is now priced at $7.99 (around IDR 130,000) per month, up $1 from the previous rate.
The Premium plan, which offers four simultaneous streams, has risen by $2, now costing $24.99 (around IDR 406,000) per month.
Additionally, the cost for adding an Extra Member to a primary account has increased from $7.99 to $8.99 (around IDR 146,000) per month.
Why is Netflix Raising Prices?
Although Netflix did not raise subscription prices in 2024, company executives had hinted at a possible increase since last year. In its quarterly letter to investors, Netflix explained that the price adjustment is aimed at maintaining its commitment to investing in high-quality content and enhancing the user experience.
“We continue to invest in top-tier programming and strive to provide greater value to our members. Occasionally, we ask our members to pay a little more so we can reinvest and further enhance Netflix,” the company stated in its report.
This price adjustment applies to most subscription plans in the United States, Canada, Portugal, and Argentina.
Netflix Strengthens Its Position in the Streaming Industry
In its Q4 2024 earnings report, Netflix raised its revenue outlook for 2025 to a range of $43.5 billion to $44.5 billion, which is $500 million higher than previously estimated.
According to Paolo Pescatore, an analyst and founder of PP Foresight, this move reinforces Netflix’s dominance in the streaming industry.
“Netflix is reaffirming its leadership position and is now flexing its strength by adjusting its prices, considering that its content lineup is far stronger and more diverse than its competitors,” he said.
With a growing subscriber base and increasing revenue, Netflix appears more confident than ever in maintaining its status as the world’s leading streaming platform.
