Get ready to pay more for Netflix service

 

In the early days of this new year, prepare to pay more for a subscription to Netflix.  On January 22, 2025, the streaming giant announced its decision to raise prices.  The increase will affect most plans in the United States, Canada, Portugal and Argentina.  The price hikes comes after the company reported adding a record 19 million new subscribers in the most recent quarter.  That's right!  19 million new subscribers, for a total of 302 million members.  Revenue was 16 per cent higher over the last three months of 2024 compared to a year earlier, surpassing $10 billion in a single quarter for the first time.

Unfortunately, Netflix's good fortune will not be passed on to its subscribers.  They will not be given a break.  Here's why - according to Netflix.  In a letter to its shareholders, the company stated that the latest price increases allow the company to reinvest "to further improve Netflix."  Co-CEO Greg Peters said, "We listen for signals like engagement, retention, acquisition," and other secondary signals.  All to tell us when we've achieved that increase in value.  And when we've done, then we asked them to pay a bit more to keep that virtuous cycle going."

This is Netflix's first price change in the United States since October 2023.  The 2025 subscription prices are as follows:

* The ad-supported tier increases to $7.99 monthly, up from $ 6.99.

* The standard ad-free tier increases to $17.99 monthly, up from $15.49.

* The premium tier increases to $24.99 monthly, up from $22.99.

I understand that Netflix is a business.  However, the company is enjoying enormous profits and unprecedented growth. It should share some of that profit with consumers, not just its shareholders.  Netflix's subscribers have fueled its growth.  It is only fair that they should also share in its good fortune.  Jacking up prices during a time of increased profit does not send a message of good will.  Netflix has acted selfishly. It has blown an opportunity to improve its image by giving its customers a much-needed break.  At the very least, it should have refrained from increasing its prices for the time being.  As Netflix becomes more and more expensive, it risks driving subscribers away.  They will seek more affordable options.

- Joanne