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Netflix deals devastating price rise to millions - here's the date it kicks in

January, 22, 2025-05:09

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Netflix deals devastating price rise to millions - here's the date it kicks in

Netflix deals devastating price rise to millions - here's the date it kicks in:

Netflix is increasing prices for its subscription plans in the U.S. as it seeks to capitalize on the growing demand following a significant rise in subscribers at the end of last year. The ad-supported plan will see a $1 increase, bringing it to $7.99 per month, which represents a 14 percent hike. The standard ad-free plan will rise from $15.49 to $17.99, while the premium tier will increase by $2 to $24.99.

These price adjustments will take effect almost immediately, coinciding with subscribers' next billing cycle. The last price increase occurred in October 2023, and this marks the first adjustment to the entry-level ad-supported plan since its introduction in 2022.

During the holiday quarter, Netflix added 18.9 million subscribers, significantly exceeding Wall Street expectations and bringing the total to 301.6 million. Following this news, shares surged by over ten percent. The surge in subscribers was largely driven by live sporting events and the much-anticipated return of the popular South Korean series 'Squid Game.'

Demonstrating confidence that the price increases will not lead to widespread cancellations, Netflix has slightly raised its revenue forecast for the year to $44 billion, indicating an approximate 13 percent growth from the previous year.

The streaming giant announced that it will continue to raise prices for most plans in the U.S., Canada, Portugal, and Argentina as it invests in programming that resonates with its audience. Netflix reported that its fourth-quarter programming exceeded internal expectations.

Notably, the Jake Paul vs. Mike Tyson boxing match became the most-streamed sporting event, and two NFL games on Christmas Day ranked among the most-streamed events in league history. Additionally, the service benefited from the second season of 'Squid Game,' which is projected to become one of its most-watched original series.

According to researcher Antenna, Netflix maintains the lowest cancellation rate among subscription streaming services, with a churn rate of 1.8 percent in December.



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