The streaming industry has experienced explosive growth in recent years, establishing itself as one of the most dynamic and profitable sectors in global entertainment. In this context, Netflix has announced an increase in subscription prices in the United States.
Driven by content diversification, technological advancements, and changing consumption habits, this phenomenon is not only reshaping how audiences access entertainment but is also redefining strategies for major companies in the sector.
According to a recent report by Grand View Research, the global streaming services market reached a value of over $125 billion in 2024, with a projected compound annual growth rate of 18.8% through 2030.
In this regard, leading platforms such as Netflix, Disney+, Amazon Prime Video, and HBO Max have reported significant increases in their subscriber bases, while new platforms like Apple TV+ and regional services have gained traction in specific markets, further diversifying the offerings.
Netflix’s Price Increase
Netflix announced it will raise subscription prices in the United States and Canada following a historic increase of 19 million new subscribers in the last quarter of 2024.
Effective immediately, the Standard plan without ads will increase from $15.49 to $17.99 per month.
The Standard plan with ads will see a $1 increase, going from $6.99 to $7.99. The Premium plan, which includes 4K video quality, will increase by $2, rising from $22.99 to $24.99. Additionally, the cost of adding an extra member will now be $8.99 instead of $7.99.
“As we continue to invest in programming and deliver more value to our members, we will occasionally ask them to pay a bit more so we can reinvest and keep improving Netflix,” the company explained in a press release.
Subscriber Growth
Netflix’s subscriber base has been boosted by a series of key events and successful content on the platform. The boxing match between Mike Tyson and Jake Paul in November attracted an impressive 108 million viewers, becoming the most-streamed online sporting event in history.
Additionally, two NFL games streamed on Christmas Day averaged 30 million viewers, setting new records for live sports streaming on the popular platform.
The platform’s impact was also evident with the global phenomenon of Squid Game. Its second season became the most successful premiere in Netflix history, amassing 68 million views in its first week.
This impressive subscriber growth is also reflected in Netflix’s financial performance. The company reported a 16% increase in revenue during the last quarter, surpassing $10 billion in earnings for the first time in its history.
Operating income rose 52% year-over-year, totaling $2.3 billion. Furthermore, Netflix announced a $15 billion stock buyback, which led to a 13% increase in stock value following the announcement.
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