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Published on January 22, 2025
Netflix Hikes Subscription Prices Amid Surge in Subscribers and Exclusive Content SuccessSource: stockcatalog, CC BY 2.0, via Wikimedia Commons

Netflix subscribers might want to brace themselves for a bit of sticker shock as the company has announced new price increases across its subscription plans. The Standard plan, sans ads, will jump to $17.99, while the ad-supported version will now run you $7.99 monthly, as detailed in an earnings report cited by The Verge. If you're feeling fancy and want to spring for the Premium tier, prepare to shell out $24.99 monthly. Subscribers can expect these hikes to hit their wallets in their next billing cycle, per Netflix spokesperson MoMo Zhou.

The timing of the hike comes after Netflix reported 19 million new subscribers for the last quarter of 2024, as mentioned by CNN. This is the largest single-quarter increase the company has seen, pushing the global subscriber count to a staggering 302 million. Notably, Netflix credited part of this surge to the streaming of live sporting events, including a Mike Tyson and Jake Paul boxing match, which was a knockout with 108 million viewers, and Christmas Day NFL games, which averaged 30 million viewers.

Besides sports, Netflix's continued success with original content drives growth. "Squid Game" season two was pointed out as a significant contributor, drawing in a whopping 68 million views in the first week of release. As per CNN, Netflix Co-CEO Ted Sarandos highlighted these numbers during the company's investor call, suggesting that live events and sports could represent a substantial area for future growth, as "sports is a very important part of that, but it is a part of that expansion."

In tandem with the price raise, Netflix is introducing something called the Extra Member with Ads plan, meaning you can now add an ad-supported membership to your account for an added $6.99 per month. This new option, meant for those outside your household, used to be priced at $7.99 but will now cost you just a bit less. Perhaps to soften the blow of higher bills, Netflix is flaunting its latest operating income of over $10 billion, the first time the streamer has surpassed this milestone. Those who invest in the stock market have sweetened the pot further with the announcement of a $15 billion stock buyback, which, according to CNN, sent shares up by 13% yesterday afternoon.