LOS ANGELES (AP) — Netflix, the world’s largest streaming platform, announced a price hike for its subscription plans in key markets, including the U.S., Canada, Portugal, and Argentina, following a record-breaking year of subscriber growth.
Effective immediately, U.S. subscribers will see rates increase across most plans. The ad-supported tier now costs $7.99 per month, up from $6.99, while the standard plan rises from $15.49 to $17.99. The premium plan, which allows four users to stream simultaneously, increased by $2 to $24.99 monthly.
Netflix reported annual operating income exceeding $10 billion for the first time, alongside a 16% year-on-year revenue growth. Wall Street responded positively, with Netflix’s stock price climbing 12% by midmorning Wednesday.
The company added 19 million paid subscribers in the fourth quarter alone, buoyed by high-profile releases such as the second season of “Squid Game” and new ventures like live sports broadcasting. Its total subscriber base now stands at 302 million globally, cementing its position as the leader in streaming.
Analysts suggest Netflix’s scale and exclusive content give it a competitive edge, allowing the company to increase prices without significant consumer backlash. Co-CEO Greg Peters noted that previous price adjustments in international markets have been well-received, and he expects the same for these changes.
Despite the price increases, Netflix’s ad-supported tier remains competitive at $7.99 monthly compared to Disney Plus ($9.99), Amazon Prime Video ($8.99), and Max ($9.99). However, competitors like Disney Plus and Paramount Plus often offer discounts, especially during the holiday season, a strategy Netflix rarely employs.
Analysts predict Netflix’s rivals will focus on holding prices steady to gain market share, avoiding a similar price hike.
Netflix projects revenue between $43.5 billion and $44.5 billion for 2025, marking an expected growth rate of 12% to 14%. The company continues to innovate, diversifying into mobile gaming and cracking down on password sharing to maintain its dominance in a crowded streaming market.
With 302 million subscribers, Netflix significantly outpaces competitors like Disney Plus (158 million combined for Core and Hotstar), Amazon Prime Video (200 million viewers), and Warner Brothers Discovery’s Max and Discovery Plus (110 million subscribers).
