 "Inside Netflix's price hike strategy: Why subscribers will pay more in 2025")
OTT giant Netflix has announced a price increase for its premium and standard plans in select markets, including the US, Argentina, Canada, and Portugal, citing the need to support ongoing investments in content.
This decision follows a standout year for the company, which gained nearly 19 million new subscribers during the holiday season, closing 2024 with over 300 million subscribers globally. Netflix reported record annual net additions of 41 million subscribers and achieved a $1.87 billion profit in the fourth quarter, supported by $10.25 billion in revenue — marking double-digit growth from the previous year.
New subscription prices
In the US, the premium plan will now cost $25 per month, a $2 increase, while the standard plan rises to $18. The ad-supported standard tier will also see a $1 hike, bringing its cost to $8 per month. Similar price adjustments are being implemented in Argentina, Canada, and Portugal.
Reason for Netflix price hike
Netflix attributed the price increase to its continued commitment to investing in content and enhancing the platform’s value. “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the company stated in a letter to investors, as reported by BBC.
The company highlighted its dominant position in the streaming market, crediting its success to a steady flow of popular content. Executives noted, “We enter 2025 with strong momentum, coming off a year with record net additions... and having re-accelerated growth.”
Impact of original content
Netflix’s global hit, Squid Game, which returned with its second season, remains the platform’s most-watched series ever. Other anticipated releases, such as new seasons of Stranger Things and Wednesday, continue to bolster the company’s cultural influence.
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Netflix is diversifying its offerings with partnerships and sports programming. US subscribers will gain access to WWE content and the return of NFL games on Christmas Day. Additionally, the company has started bundling services with former competitors like Peacock and Apple TV.
Ad-supported plans
The ad-supported tier has been a significant driver of growth, contributing to over 55 per cent of signups in applicable regions during Q4 and experiencing a 30 per cent quarter-over-quarter growth. Netflix aims to further expand its ad revenue focus in 2025.
Looking ahead, the company projects annual revenue between $43.5 billion and $44.5 billion, with a targeted 29 per cent operating margin.
Netflix content tailored for India
As of January 2025, the streaming giant has introduced several subscription plans tailored to meet the diverse preferences of Indian viewers.
Netflix currently offers four distinct subscription tiers in India:
>Mobile plan: One device streaming, SD quality (Rs 149)
>Basic plan: One device streaming, HD quality (Rs 199)
>Standard plan: Two devices streaming, Full HD quality (Rs 499)
>Premium plan: Up to four devices streaming, UHD quality (Rs 649)