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BusinessJan 22, 2025

Netflix Flexes Pricing Power As Streaming Giant Hits 300M Subscriber Milestone

Media Dominance

Daniel Schoester

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Netflix’s famous “Are you still watching?” prompt has a new companion: “Would you mind paying more?” The streaming powerhouse announced price increases in the US, Canada, Portugal, and Argentina, encompassing the previously untainted ad-supported tier — just as Tuesday’s Q4 earnings declared the company’s largest quarterly subscriber increase to 300M+.

The standard and premium plans will increase by $2.50 and $2, respectively, to $17.99 and $24.99 per month — along with a $1 inaugural bump to the ad-supported tier, now $7.99 monthly.
Co-CEO Ted Sarandos justified the increases by highlighting Netflix’s upcoming 2025 content slate, saying, “When you’re going to ask for a price increase, you better make sure you have the goods and engagement to back it up.”

Beyond the numbers: Surging 10% on the news yesterday, Netflix’s Q4 reported a record 22.2% operating margin. Now exceeding the combined worth of Disney, Comcast, Warner Bros. Discovery, and Paramount, Netflix’s evolution into an entertainment heavyweight is evident in this year’s expanded $18B content war chest and fresh foray into live events. They say there’s no business like show business — and Netflix is making sure everyone pays attention.