Netflix raises subscription prices again

Netflix closed 2024 with historic figures (adding nearly 19 million new subscribers) thanks to a large content offering that included live sports during the holidays. However, the company also announced an increase in subscription rates in several countries (including a significant part of the Americas and Europe).

Netflix explained, in a letter sent to shareholders, that the price adjustment is a response to its intention to "continue to invest in content and deliver more value to members." Although the company did not immediately specify the new costs, co-CEO Greg Peters confirmed during a call with investors that the basic plan with ads will increase to $7.99 per month in the United States, while the standard plan will rise to $17.99 and the premium will cost $24.99.

"Our approach to pricing has not changed (...) We want to make sure our subscribers perceive an increase in the value of our offering before we introduce any adjustments."

Advertising

Since the introduction of an ad-supported plan in 2022, Netflix has focused on advertising as a key source of revenue. According to Peters, more than half of new subscribers during the last quarter chose this plan, reinforcing the platform's decision to integrate commercials into its live streams.

The increase led Netflix to close significant deals with the NFL, the WWE and the Women's World Cup, consolidating its position in the live sports segment.