Netflix Hikes Subscription Prices Amid Revenue Growth in Q4, 2024

• Netflix has announced a hike in subscription prices across all tiers, with an average increase of about $1.85
• This follows a successful Q4 2024, during which the company recorded revenue growth and an increase in new subscriptions.
• The company has also announced intentions to initiate a $15 billion stock buyback in the coming months

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Netflix has announced that there will be an increase in subscription prices across different tiers.

This hike in subscription prices is coming after Netflix recorded the largest-ever growth in subscriber base in Q4, 2024.

With 19 million new subscriptions recorded in that quarter, Netflix cemented its position as the number one streaming giant globally, with 302 million total subscribers worldwide.

What triggered new subscriptions?

According to Netflix, some of the shows it streamed in the quarter triggered the subscription growth. The Mike Tyson and Jake Paul boxing match, held in November 2024, pulled 108 million views worldwide to become the most streamed sporting event ever.

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The two Christmas Day NFL games also pulled a fair share of views to become the most streamed football games, with an average of 30 million views.

Other successful content includes the Squid Game, season two which pulled about 68 million viewers in the first week of streaming; as well as the recent addition of WWE “Raw” live broadcasts on Monday night.

Recall that the streaming giant also acquired many movies in the quarter, including Kunle Afolayan's Anikulapo.

Speaking on the investor call, Netflix Co-CEO Ted Sarandos described the quarter as the best so far, with huge live events contributing to the big numbers. He revealed that the company is eyeing streaming sports in the near future.

Sarandos said;

“Right now, 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.”

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According to CNN, Sarandos added that Netflix will no longer include paid membership stats in its quarterly reports but will instead have an engagement report twice a year.

New price list

The new price list breakdown reveals that the Standard monthly subscription without advertisements will now cost $17.99, up from $15.49. The Standard monthly package with ads will rise from $6.99 to $7.99.

For the premium account with 4K video quality, the monthly subscription price will increase from $22.99 to $24.99.

This new price will first affect subscribers in the United States of America and Canada.

In its letter to investors, Netflix said that asking subscribers to pay a little more provides more funds to invest in improving content and delivering better value on Netflix.

The streaming company last increased prices in 2022, even though competitors like Apple, Max, and Disney have all raised prices since then.

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The general assumption among Analysts is that the price increase will push the subscribers to take on lower-price plans with advertisements and boost profitability for Netflix.

Netflix reports revenue

For the same Q4, 2024, Netflix’s revenue surged 16% from the last quarter, pushing past the $10 billion mark for the first time.

Operating income also increased 52% year on year to $2.3 billion.

Netflix management also announced intentions to initiate a $15 billion stock buyback in the coming months.

Netflix adjusts Nigeria's operations

In related news, Netflix revealed that it would be adjusting its operations in Nigeria.

Netflix clarified this in response to earlier reports that it would be exiting Nigeria and reducing its use of Nigerian content.

The streaming giant announced that it had no plans to leave Nigeria. Industry players confirmed that Netflix was only pulling back from wholly financing projects or entering exclusive distribution agreements.

Source: Legit.ng