Netflix increases monthly subscription fees following impressive earnings report that boosts stock by $125

In the midst of a strong earnings report, Netflix has decided to increase its subscription prices, which will affect all users who enjoy streaming their favorite shows on the platform. Subscribers who pay for service without ads will see a 16.1% increase, going from $15.49 to $17.99, while those with a standard account that includes ads will experience a 14.3% hike, jumping from $6.99 to $7.99 per month.

The highest-priced tier, which offers 4K video resolution, will also see a raise of $2 per month, bringing the total cost to $24.99, an 8.7% increase. This recent price increase comes after Netflix last raised prices for its standard and premium plans back in October 2023. The company’s confidence in raising prices could be attributed to its latest quarterly results, which showed a positive trend for the streaming service.

Netflix reported robust revenue of $10.25 billion for the fourth quarter, marking the first time the company has surpassed $10 billion in any quarter. Net income came in at $1.87 billion, equivalent to $4.27 per share. The number of subscribers worldwide also saw an increase to 302 million, representing a 15.9% growth from the previous year. The success of certain content, such as the second season of “Squid Game,” which attracted 68 million viewers in its first week, played a crucial role in adding new subscribers.

Furthermore, noteworthy streaming events like the Jake Paul vs. Mike Tyson fight set a record for the most-streamed sporting event in history. The two NFL playoff games streamed on Christmas Day also made history as the most-streamed games in NFL history. Netflix is optimistic about its future prospects, with revenue in the current quarter projected to reach $10.4 billion, marking an 11.2% annual increase. Estimated net income for the first quarter of 2025 stands at $2.44 billion.

Looking ahead to the full year, Netflix has raised its revenue guidance to a range between $43.5 billion and $44.5 billion, exceeding previous estimates. Anticipated returns for 2025 are bolstered by the return of popular shows such as “Squid Game,” “Wednesday,” and “Stranger Things.” The market responded positively to Netflix’s strong performance, as the company’s shares soared by $125.12 in after-hours trading, representing a 14.4% increase to reach $994.80 by the end of the trading day.