Netflix has just secured its spot as the most popular streaming service in the world based on subscribers, as it revealed in a shareholders letter that it gained a record-breaking 19 million new members in the last quarter, ending 2024 with a total of 302 million subscribers.
Last year, Netflix said it would no longer report its quarterly paid membership numbers starting the first quarter of 2025. Instead, the company will publish an engagement report twice a year along with any major updates.
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Despite the huge gain, Netflix seems to be a bottomless pit, as it still wants to continue adding more paying members to its already-massive streaming empire. However, the streaming giant just made a major price hike announcement that seems to contradict its desire for more monthly memberships.Â
Netflix hiked prices but subscribers don’t seem to mind.Â
Netflix and other streaming services make a trend out of membership price hikes
Price hikes among streaming services are starting to become a common occurrence that could almost be categorized as a trend that companies have made more frequent in the last few years.
In 2024, Walt Disney Company’s (DIS) Disney+ raised prices for its ad-free tiers, two Hulu tiers went up in October, and Comcast’s (CMCSA) Peacock increased its Premium and Premium Plus plans by $2 per month last year and $1 the year before that.Â
In 2025, Warner Bros. Discovery’s (WBD) Discovery+Â was the first to raise its prices by $1 per month, with its ad-supported tier increasing to $5.99 monthly and its ad-free tier to $9.99, and YouTube upped the price of its base plan for YouTube TV by $10 a month to $82.99 monthly.
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All big streaming services are focused on growth and profitability, which is one of the main reasons why they have been increasing membership costs over the last few years.Â
However, Netflix (NFLX) Â has found its gold mine through its ads business. In its latest earnings report, the streaming giant revealed that its advertising revenue doubled in 2024 and is expecting for it to double once again in 2025.
Netflix raises membership prices in order to deliver more to subscribers
On Tuesday, Netflix it raised its monthly membership prices in the U.S. and Canada, increasing its ad-supported tier from $6.99 to $7.99, its ad-free tier from $15.49 to $17.99, and its Premium tier from $22.99 to $24.99. This is the first time since 2022 that Netflix will increase its membership prices.Â
On Tuesday, Netflix announced it raised its monthly membership prices in the U.S. and Canada, increasing its ad-supported tier from $6.99 to $7.99, its ad-free tier from $15.49 to $17.99, and its Premium tier from $22.99 to $24.99. This is the first time since 2022 that Netflix will increase its membership prices.Â
Netflix is attributing its price increase to the huge investments it has made to expand its streaming offerings, which have turned out to be incredibly successful among its members.Â
âAs 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,â said Netflix in a shareholders letter.
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According to Netflix, it has accounted for six out of the 10 most searched TV shows globally in the U.S. and UK on Google and obtained the most Golden Globe nominations and wins of any entertainment company
In 2024 alone, Netflix dove into live sports more than ever, streaming the NFL Christmas games, which were the two most-streamed NFL games in history, and the “Jake Paul vs. Mike Tyson” boxing match, which became the most-streamed sporting event ever. The streaming giant also released the second season of “Squid Game,” which was its biggest premiere to date, reaching 68 million views in its first week.
“We believe that the live events business is where we really want to be, and sports is a very important part of that, but it is a part of that expansion,â said Netflix Co-CEO Ted Sarandos in an earnings call.
Although 2025 has just begun, Netflix has already added its weekly WWE “Raw” live broadcasts and secured the U.S. rights for FIFA’s Women’s World Cup. This will further create demand for its live-streaming services and ensure a future increase in memberships since fans won’t want to miss out on their favorite events.
Price hikes might be annoying for clients, but the stock market seemed to agree with Netflix’s business move as the company’s stock soared nearly 10% during Wednesday’s market close.
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