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Netflix subscribers will see a noticeable jump in monthly subscription fees as the streaming company revels in new viewership.
In a letter to shareholders on Tuesday, the company announced that it had raised prices on most plans in the US, Canada, Portugal and Argentina.
The standard monthly membership jumped a dollar, to $7.99 a month, according to Gregory K. Peters, Netflix 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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An ad-free membership will increase by more than two dollars, to $17.99 a month, Peters said. Premium subscribers will have to pay an additional two dollars per month, bringing the monthly fee to $24.99.
Peters described the company's new prices as “highly affordable”.
“You've seen us increase prices in a number of markets in EMEA and APAC and LatAm over the last few quarters across most plans including advertising. And those changes have been seamless,” Peters said. “We certainly expect the same with these latest changes.
“I think it's worth noting, and we'll reiterate, that we believe our introductory price—$7.99 in the US, $17.99 in Canada for standard with ads—is an incredible value for entertainment and a highly affordable entry point. “
The new prices are already shown on the streaming service's website.
In this photo taken on Jan. 20, 2022, the Netflix logo is seen on a television remote control. (REUTERS/Dado Ruvic/Reuters)
Netflix saw a whopping 19 million new subscribers in the fourth quarter, adding to its total of 302 million subscribers worldwide.
Live events, incl Jake Paul Vs. Mike Tyson and two NFL games, according to management, have contributed to the company's recent success.
The game 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 | Conversion | 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 season-long major league sports is challenging, but if there was a way to make it work, Netflix would look into it.
In addition, the company saw success with the second season of its original series, Squid Game, which received nearly 166 million views.
Other top-performing shows included 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, Season 3 of The Lincoln Lawyer 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 the Netflix 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 earns 6 percent of revenue opportunities in the countries and segments it currently operates.
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 that we can reinvest in further improving 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 the company. A $15 billion share buyback sent shares up 13% Tuesday afternoon.
