In a new financial report released for the fourth quarter of 2024, Netflix has shown remarkable growth, achieving record earnings of $10.25 billion and gaining 19 million new subscribers. This brings its total to over 300 million paying members worldwide. Additionally, the streaming giant took this chance to reveal its upcoming price increase, which will first impact customers in the United States, Canada, Portugal, and Argentina.
Price Changes for Subscriptions
The standard subscription with ads, which allows users to watch content in 1080p, will see a price increase to $7.99 in the US, up from the current $6.99. Meanwhile, the ad-free standard plan will jump by $2.50, going from $15.49 to $17.99. As for the 4K premium plan, it will rise from $22.99 to $24.99. Netflix is also looking to invest more in live event broadcasting, especially after the recent boxing match between Jake Paul and Mike Tyson resulted in a record daily sign-up number. During these live events, the service displays ads to all viewers, including those who subscribe to higher-tier plans.
Plans for Future Revenue Growth
This approach represents one of Netflix’s strategies to increase its revenue. The company has set its sights on making ads a major income source by 2026. Netflix claims that in the twelve nations where an ad-supported subscription option is available, most customers prefer this kind of plan. As a result, Netflix feels assured that it can meet the demands of its advertising partners even before 2025 wraps up.
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