Netflix Hikes Streaming Prices in US Amid Strong Content Pipeline and Subscriber Growth
January 10, 2023
Key Points:
* Netflix (NFLX) raises streaming Tier prices in the US following a surge in subscribers.
* Ad-supported plan increases to $7.99, Standard plan to $17.99, and Premium plan to $24.99.
* Company cites strong content pipeline, including "Happy Gilmore 2" and new seasons of popular shows like "Stranger Things" and "Wednesday."
* Price hike seen as overdue after a successful 2024 for Netflix.
* Netflix continues to invest in sports programming, debuting WWE Raw and exploring potential UFC rights acquisition.
Details:
Netflix has announced price increases for its streaming tiers in the United States. The changes come after the company reported a significant increase in subscribers during the fourth quarter of 2024.
The company's ad-supported plan will now cost $7.99 per month, up from $6.99. The Standard plan, which does not include ads, will increase to $17.99 from $15.49. The Premium plan, offering the highest resolution and four simultaneous streams, will now be priced at $24.99, a $2 increase.
Netflix also adjusted prices outside the US, including in Canada, Portugal, and Argentina.
During a recent earnings call, Netflix Co-CEO Ted Sarandos highlighted the company's strong content pipeline, with a focus on delivering new movies and TV shows throughout 2025. He expressed confidence in the strength of the company's content offerings, calling out projects such as "Happy Gilmore 2" and the return of fan favorites like "You," "Stranger Things," and "Wednesday."
Investors have welcomed the price hike, which follows a banner year for Netflix. The company enjoyed strong success in 2024, airing two consecutive NFL games, hosting a viral boxing match between Jake Paul and Mike Tyson, and seeing the return of the hit series "Squid Game."
In addition to its focus on content, Netflix is also expanding its investment in sports programming. The company recently debuted WWE Raw and is reportedly considering a bid for UFC rights. Despite remaining non-committal on a potential UFC acquisition during the earnings call, Netflix indicated it is open to exploring additional sports content opportunities.
The company also emphasized its commitment to engagement, with each member spending an average of two hours per day on the platform. Netflix believes that its strong content pipeline and continued focus on user engagement will justify the price increases.