Netflix raises U.S. subscriber prices, attributes success to 'Squid Games' and NFL games Paul-Tyson fight

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Netflix subscribers will see a noticeable jump in their monthly subscription fees, as the streaming company revels in new viewership.

In a letter to shareholders on Tuesday, the company announced it increased prices across most plans in the U.S., Canada, Portugal and Argentina.

Standard monthly memberships jumped a dollar, up to $7.99 a month, according to Gregory K. Peters, Netflix co-CEO, president and director.

Netflix logo during a fight
Lucas Bahdi and Armando Casamonica fight during Netflix: Jake Paul vs. Mike Tyson at AT&;T Stadium on November 15, 2024 in Arlington, Texas.

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Memberships without ads will increase more than two dollars, up to $17.99 per month, Peters said. Premium subscribers will have to shell out an extra two dollars a month, bringing the monthly fee to $24.99.

Peters described the company's new pricing as "highly accessible."

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"You've seen us take up price across a number of markets in EMEA and APAC and LatAm over the last couple of quarters across most plans and including ads, too. And those changes have gone smoothly," Peters said. "We certainly expect the same for these latest changes.

"I think it's worth noting and reiterating that we believe that our starting price – it's $7.99 in the U.S., $17.99 in Canada for standard with ads – is an incredible entertainment value and it's a highly accessible entry point."

The new prices are already reflected on the streaming service's website.

Netflix logo
The Netflix logo is seen on a TV remote controller in this illustration taken January 20, 2022.

Netflix saw a whopping 19 million new subscribers in the fourth quarter, contributing to its total 302 million subscribers globally.

Live events, including the Jake Paul vs. Mike Tyson fight and two NFL games, contributed to the company's recent success, according to leadership.

The fight was the most-streamed sporting event of all time, and on Christmas Day, the platform delivered the two most-streamed NFL games in history.

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Theodore A. Sarandos, co-CEO, president and director, noted the underlying economics of full-season big league sports is challenging, but if there was a way to make it work, Netflix would explore it.

In addition, the company saw success with the second season of its original series, Squid Game, which garnered nearly 166 million views.

Other top performing shows included: The Diplomat season 2 with 21.4 million views, Senna with 16.2 million views, The Empress season 2 with 21 million views, Outer Banks season 4 with 36.8 million views, The Lincoln Lawyer season 3 with 33.9 million views, and Virgin River season 6 with 27.5 million views.

CEO of Netflix Ted Sarandos and Lee Jung-jae attend Netflix's FYSEE event for "Squid Game"
LOS ANGELES, CALIFORNIA - JUNE 12: (L-R) CEO of Netflix Ted Sarandos and Lee Jung-jae attend Netflix's FYSEE event for "Squid Game" at Raleigh Studios Hollywood on June 12, 2022, in Los Angeles, California. (Photo by Charley Gallay/Getty Images for Netflix)

Leadership noted the company only earns 6 percent of the revenue opportunity in the countries and segments it currently serves.