Netflix raises U.S. subscriber prices, attributes success to 'Squid Games' and NFL games Paul-Tyson fight
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.
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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."
"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 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.
Leadership noted the company only earns 6 percent of the revenue opportunity in the countries and segments it currently serves.
By improving and expanding its offerings, the company hopes to increase the share every year.
"As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix," investors were told in the letter.
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Revenue in the fourth quarter jumped 16% year-over-year, reaching $10.25 billion, according to company data. A $15 billion stock buyback pushed shares up 13% Tuesday afternoon.