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Netflix subscribers will see their monthly fees rise significantly as the streaming company revels in gaining new viewership.
The company announced in a letter to shareholders on Tuesday that it would increase prices on most plans in the U.S., Canada, Portugal and Argentina.
The standard monthly membership fee has jumped $1 to $7.99 per month, said Gregory K. Peters, co-CEO, president and director of Netflix.
Lucas Badi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson on November 15, 2024 at AT&T Stadium in Arlington, Texas. (Sarah Steer/Getty Images for Netflix/Getty Images)
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Ad-free membership prices will increase by more than $2, to a maximum of $17.99 per month, Peters said. Premium subscribers will have to pay an additional $2 per month, bringing the monthly fee to $24.99.
Peters described the company's new pricing as “very accessible.”
“Over the past few quarters, you've seen us increase prices in many markets across EMEA, APAC, and Latin America, including advertising on most plans. And those changes have been smooth. '' Peters said. “We expect the same with these latest changes.
“It's worth noting and I think it's worth repeating that our starting price ($7.99 in the U.S. standard price with ads, $17.99 in Canada) has incredible entertainment value and is extremely We believe this is an accessible entry point.”
The new prices are already reflected on the streaming service's website.
In this illustration taken on January 20, 2022, the Netflix logo can be seen on a TV remote control. (Reuters/Dado Luvich/Reuters)
Netflix added 19 million new subscribers in the fourth quarter, contributing to a total of 302 million subscribers worldwide.
Executives say live events such as the Jake Paul vs. Mike Tyson fight and two NFL games have contributed to the company's recent success.
The game was the most-streamed sporting event in history, and on Christmas Day, the platform delivered the two most-streamed NFL games in history.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Co., Ltd. | 869.68 | +11.58 |
+1.35% |
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Co-CEO, President and Director Theodore A. Sarandos said the economics underlying full-season major league sports are difficult, but if there's a way to make it work, Netflix said he would explore it.
Additionally, the company also enjoyed success with the second season of its original series “Squid Game,” which garnered approximately 166 million views.
Other top-performing shows include The Diplomat Season 2 with 21.4 million, Senna with 16.2 million, Empress Season 2 with 21 million, Outer Banks Season 4 with 36.8 million, and Lincoln Virgin River Season 6 has been viewed 33.9 million times and 27.5 million times.
LOS ANGELES, CA – JUNE 12: (LR) Netflix CEO Ted Sarandos and Lee Jonjae attend the Netflix Attended the “Squid Game” FYSEE event. (Photo by Charley Gallay/Getty Images for N (Harley Galley/Getty Images for Netflix/Getty Images)
Management noted that the company currently earns only 6% of its revenue opportunities in the countries and segments it serves.
The company hopes to increase its share every year by improving and expanding its products.
“As we continue to invest in our programming and deliver more value to our members, we will occasionally ask our members to pay a little more so that we can reinvest in making Netflix even better,” the investors wrote in the letter. ” he said.
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Revenue reached $10.25 billion in the fourth quarter, up 16% year over year, according to company data. The company's $15 billion share buyback sent its stock price up 13% Tuesday afternoon.
