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Last week, Netflix announced that for the final fiscal quarter of 2024, the company gained around 19 million subscribers, which makes the global subscription base over 300 million. In addition, during the last quarter of 2024, revenues also increased by 16% compared to 2023, topping $10 billion in a quarter for the first time (CBS News, 2025). In addition, Netflix’s shares increased 14% after they announced Q4 results. They also announced the revenue projections for 2025, which are expected to be between $43.5 billion and $44.5 billion.
Part of the subscriber increase has to do with the implementation of live streaming sport events such as NFL games on Christmas day, a boxing match between Jake Paul and Mike Tyson and new shows such as Squid Game season 2.
While this is all very positive for the firm and its shareholders, last week Netflix also announced an increase in its monthly subscriptions price for US, Canada, Argentina and Portugal. The recent price increase is related to factors such as inflation, market conditions, and changes in local taxes. These are the new price shifts:
- Standard plan will increase from $15.49 to $17.99
- Standard plan with ads will increase from $6.99 to $7.99
- Premium plan will increase from $22.99 to $24.99
- Cost of adding an extra member with ads $6.99 or $8.99 without ads
The recent price increase also reflects the competition across streaming platforms. Other streaming platforms such as Disney+ and Hulu, have also increased their subscription prices. These companies are also competitors of Netflix due to their streaming offerings and pricing bundles that they offer. For example Disney+ and Hulu have a partnership where you can get both subscriptions almost for the price of one.
In order to maintain customer retention, there are many ways that Netflix can set themselves apart from competitors. One of their priorities for 2025 is to improve their advertisement offerings (Variety, 2025). Their ad-based tier plan also helps Netflix increase revenue, maintain relationships with other business partners and can help retain customers who are not willing to pay a premium price for the streaming platform.
In a letter to shareholders, Netflix mentioned, “We maintain a leadership position in engagement, revenue and profit” (Netflix Shareholders Letter, 2025). Although film production and technology prices will continue to increase, another priority for them this year is to continue positioning themselves as one of the top-leading entertainment platforms by improving the customer experience. I think consumers will continue paying for Netflix despite the increase in price per subscription if Netflix continues to deliver high-quality content and implement new customer experiences.