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Netflix subscribers will see a significant jump in their monthly subscription fees, as the streaming company enjoys new viewing.
In a letter to shareholders on Tuesday, the company announced that it is raising prices on several programs in the US, Canada, Portugal and Argentina.
The average monthly membership jumps a dollar, up to $7.99 a month, according to Gregory K. Peters, Netflix co-CEO, president and director.
Lucas Bahdi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson at AT&T Stadium on November 15, 2024 in Arlington, Texas. (Sarah Stier/Getty Images for Netflix / Getty Images)
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An ad-free membership will go up by more than two dollars, up to $17.99 a month, Peters said. Premium subscribers will have to shell out two dollars more per month, bringing the monthly fee to $24.99.
Peters described the company’s new prices as “very affordable.”
“You’ve seen us take prices in a lot of EMEA and APAC and LatAm markets over the last few months across a lot of programs and including ads, too. And those changes have gone well,” Peters said. “We definitely expect the same from these recent changes.
“I think it’s worth noting and stressing that we believe our starting price — $7.99 in the US, $17.99 in Canada for the standard rate with ads — is incredible entertainment value and a very accessible entry point.”
The new prices have already been displayed on the streaming service’s website.
The Netflix logo is seen on a TV remote control in this photo taken on January 20, 2022. (REUTERS/Dado Ruvic/Reuters)
Netflix saw 19 million new subscribers in the fourth quarter, bringing its total to 302 million subscribers worldwide.
Live events, including the Jake Paul vs. Mike Tyson and two NFL games, have contributed to the recent success of the company, according to the leadership.
The game was the most televised sporting event of all time, and on Christmas Day, the stadium brought two of the most televised NFL games in history.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| NFLX | Company NETFLIX INC. | 869.68 | +11,58 |
+1.35% |
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Theodore A. Sarandos, CEO, president and director, noted that the basic economics of full-season major league games are challenging, but if there was a way to make it work, Netflix would explore it.
In addition, the company saw success with the second season of its original series, Squid Game, which received nearly 166 million views.
Other top performing shows included: The Diplomat season 2 with 21.4 million views, Senna with 16.2 million views, The Empress season 2 with 21 million views, Outer Banks season 4 with 36.8 million views, season 3 of -Lincoln Lawyer with 33.9 million views, and Virgin River Season 6 with millions of views 27.5.
LOS ANGELES, CALIFORNIA – JUNE 12: (LR) Netflix CEO Ted Sarandos and Lee Jung-jae attend Netflix’s FYSEE “Squid Game” event at Raleigh Studios Hollywood on June 12 , 2022, Los Angeles, California. (Photo by Charley Gallay/Getty Images by N (harley Gallay/Getty Images for Netflix/Getty Images)
The leadership noted that the company is only getting 6 percent of the revenue opportunity in the countries and sectors it currently operates.
By developing and expanding its offerings, the company hopes to increase its share every year.
“As we continue to invest in programming and deliver more value to our members, we will ask our members to pay less to reinvest in developing Netflix,” the investors said in the letter.
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Revenue in the fourth quarter jumped 16% year over year, to $10.25 billion, according to company data. A $15 billion stock buyback sent shares up 13% Tuesday afternoon.