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Netflix announced Tuesday that it would raise prices for most of its subscription tiers in the United States and Canada after the streaming giant reported 19 million new subscribers in the final quarter of 2024.
The subscriber increase, Netflix’s largest ever, puts the streaming giant at 302 million worldwide, solidifying the company’s position at the top of the industry.
Netflix attributed the service’s latest success to the boxing match between Mike Tyson and Jake Paul in November, which it said attracted 108 million viewers worldwide, making it the most streamed sporting event of all. time. Netflix then hosted two NFL games on Christmas Day, which averaged 30 million viewers worldwide, making them the most streamed football games in history.
Subscriptions were also buoyed by the success of the second season of “Squid Game,” the platform’s biggest premiere to date, which attracted 68 million views in its first week. Earlier this month, Netflix also added live streams of WWE “Raw” on Monday nights.
The price increases announced Tuesday will see the standard ad-free monthly subscription increase from $15.49 to $17.99, while a standard ad-supported account will increase by a dollar to $7.99. Its most expensive premium tier, which includes 4K video quality, will increase by $2 to $24.99.
“As we continue to invest in programming and deliver more value to our members, we will occasionally ask our members to pay a little more so that we can reinvest to make Netflix even better,” the company said in a letter to members. investors.
Netflix also said its revenue grew 16%, surpassing $10 billion for the first time in the company’s history, while its operating profit totaled $2.3 billion, a increase of 52% over one year. The company also announced a $15 billion stock buyback, sending shares up 13% Tuesday afternoon.
During the company’s investor call, Netflix co-CEO Ted Sarandos highlighted the streamer’s recent success with live sporting events.
“Even in an incredible quarter where we had three huge live events – we had an incredible fight, two NFL games – we had one of our biggest TV series ever in the season two of ‘Squid Game,’ all very successful events and titles that we are excited about,” Sarandos said.
Sarandos added that the company will continue to look to live events and sports for future growth.
“If there was a path where we could actually make the economy work, both for us and for the league, we would certainly explore it,” Sarandos said. “But, right now, we think the live events business is where we really want to be, and sports is a very important part of that, but it’s part of that expansion.”
The earnings report marks the last time Netflix will publicly release its paid membership figures on a quarterly basis, although the company said it will continue to share key membership milestones as they become available. will come true.
This is a developing story and will be updated.
