Netflix Raises US Subscriber Prices, Credits Success to ‘Squid Games’ and NFL Games Paul-Tyson Fight
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Netflix subscribers will see a noticeable jump in its monthly subscription fees as the streaming company enjoys new viewership.
ua letter to shareholders on Tuesday, the company announced it had raised prices on most plans in the US, Canada, Portugal and Argentina.
The standard monthly membership fee jumped a dollar, to $7.99 a month, according to Gregory K. Peters, Netflix’s co-CEO, president and director.
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 a month, Peters said. Premium subscribers they’ll have to shell out an extra two dollars a month, bringing the monthly fee to $24.99.
Peters described the company’s new prices as “very affordable.”
“You’ve seen us raise prices in a number of markets in EMEA, APAC and LatAm over the last few quarters across most plans, including ads. And those changes have been smooth,” Peters said. “We certainly expect the same for these latest changes.
“I think it’s worth noting and repeating that we believe our starting price – which is $7.99 in the US, $17.99 in Canada for standard with ads – is an incredible entertainment value and a very affordable entry point.”
The new prices are already visible on the website of the streaming service.
In this illustration taken on January 20, 2022, the Netflix logo is seen on a television remote control. (REUTERS/Dado Ruvić/Reuters)
Netflix recorded a whopping 19 million new subscribers in the fourth quarter, bringing its total to 302 million subscribers globally.
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 delivered the two most streamed NFL games in history.
| Ticker | 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, noted the underlying economics seasonal big sports is challenging, but if there was a way to make it work, Netflix would explore it.
In addition, the company saw success with the second season of its original series, Squid Game, which garnered nearly 166 million views.
The other most successful series are: 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, 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: (L-R) 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 earns only 6 percent of the revenue opportunity in the countries and segments it currently serves.
By improving and expanding its offering, the company hopes to increase its share every year.
“As we continue to invest in programming and provide more value to our members, we will occasionally ask our members to pay a little more so we can reinvest in making Netflix even better,” investors were told in a letter.
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Fourth-quarter revenue jumped 16% year over year to $10.25 billion, according to the company. A $15 billion share buyback pushed the stock up 13% Tuesday afternoon.
