Netflix Announces Price Increase Following Record Subscriber Growth

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Netflix has announced a price increase for its premium and standard memberships in the United States after adding nearly 19 million subscribers during the holiday season, bringing its total subscriber count to over 300 million globally. The cost of premium memberships will rise by $2 to $25 per month, while standard memberships will increase to $18. The standard ad-supported tier will also see a $1 increase, making it $8 per month.

The company credits its growth to continuous investments in new shows and films, and is looking to enhance its offerings further. In the last quarter of 2024, Netflix reported a profit of $1.87 billion, with revenue reaching $10.25 billion, reflecting double-digit growth year-over-year. Following this announcement, Netflix shares increased by over 14%, trading above $993.

Looking ahead, Netflix aims to expand its ad-supported plans and plans to deliver more content, including new seasons of popular series. Despite facing intense competition from major players in both traditional entertainment and technology sectors, Netflix remains confident in its market leadership, noting that its members engage with the service for about two hours each day.

With a focus on improving its pricing strategy and content offerings, Netflix forecasts revenue between $43.5 and $44.5 billion for 2025, with a targeted operating margin of 29%. Popular shows like "Squid Game," which played a significant role in solidifying Netflix's international status, will return along with new content offerings in the upcoming year.

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