Netflix will increase the costs of every subscription plan the following month. Netflix’s growth numbers show its best-ever quarter in 2024. It added 19 million subscribers from October to December last year, boosting its worldwide count to 300 million viewers.
Price Increases Across the Board
Netflix raised its rates for American, Canadian, Portuguese, and Argentine subscribers. Here is the updated pricing breakdown:
- Ad-Supported Tier: $7.99/month (up from $6.99)
- Standard Tier: $17.99/month (up from $15.99)
- Premium Tier: $24.99/month (up from $22.99)
The company has changed its ad-supported tier’s monthly rate for the first time, introducing the plan last year in November to $7.99/month. Netflix shifted the price for its ad-supported plan to $1 a month higher, making it equal to what people paid for their entire Netflix subscription back in 2013. When Netflix was founded in 2013, customers paid $7.99 for constant, commercial-free access without split pricing plans.
Why the Price Hikes?
Netflix claims it raises prices to fund the creation of expensive new shows. The hit show Stranger Things will air on Wednesday while Netflix works to keep its streaming-leading position against growing competition.
Netflix explained in a statement to its shareholders, “We sometimes ask you to pay more money to help us keep growing and making Netflix better. “
Introducing Another Tier: Extra Member with Ads
Netflix is adding a new plan: Adding the Extra Member with Ad Users lets subscribers add an extra individual from outside their home for $7.99 monthly. Netflix is clamping down on account sharing and growing its content simultaneously, and this change in strategy comes at the same time.
Expanding Live Content and Special Events
Netflix is investing more resources in this area to match the growing live content of other streaming providers. Netflix is reaching more people by showing them live sporting events, like NFL games and Mike Tyson boxing matches. The special Mariah Carey holiday concert quickly became one of Netflix’s popular shows.
The Streaming Price War
Netflix might be taking too big a risk when it raises its prices to compete with other streaming services for subscribers. As streaming subscriptions become just as expensive as regular TV payments, more viewers feel the squeeze.
One X user succinctly said, “The money we have simply isn’t enough.”
Is Netflix Still Worth It?
As Netflix raises its prices, people wonder if they will continue paying for a service that no longer seems to justify the expense. A few people see the fantastic shows returning and the added live content as reasons to pay more. Some subscribers would instead save money on streaming services they discover or find ways to watch content for free rather than keep paying Netflix’s increasing costs.
These price changes show that Netflix is fighting to lead the streaming industry and is ready to ask for price hikes despite challenges from others who do the same.
Ethan Cole is a tech aficionado dedicated to exploring the latest innovations and gadgets, providing reviews and insights to keep you updated in the tech world.
