Timothy St. John•Thursday, January 23, 2025•2 min read
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The streaming giant Netflix (NFLX) has announced plans to increase its prices yet again after being emboldened by massive numbers of new subscribers and a positive earnings report.
Netflix will increase its prices again soon on subscription tiers that will affect users in the United States and Canada. The company announced this after a higher than expected earnings report and after revealing a massive increase in new subscribers.
The company now has 302 million subscribers across the world, and the increase in subscribers is mostly attributed to the November boxing match between Jake Paul and Mike Tyson. The bout’s 108 million viewers made it the most watched streaming sports event ever. In December, the streamer hosted two NFL matches that drew in 30 million viewers, breaking records once more for streaming sports events.
On Tuesday, the company announced the new price increases, with the premium tier receiving a $2 hike to $24.99. The company’s ad-free standard subscription plan would move from $15.49 per month to $17.99. The subscription plan that includes ads will be climbing from $6.99 to $7.99.
Netflix’s Positive Earnings Report
More subscribers mean more serves are needed for the streaming giant, so their costs will go up, but their revenue has spiked as well. The company posted the results of its quarterly earnings report late Tuesday night. For the first time, they brought in more than $10 billion revenue for a quarter.
That is a 16% increase, and the good news helped spur the stock price by about 10% on Wednesday. If they stick to their new pricing strategy and do not hemorrhage customers, then they should have an even better earnings report to issue next time.
While many subscribers are likely to throw in the towel once the new rates hit, the new subscribers will tend to adopt them without complaint. The surge of new subscribers is likely to help keep the company earnings shooting up and make this a very good long-term investment in 2025.
Timothy St. John
Financial Writer – European & US Desks
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