Millions of Netflix customers were left shaking their heads earlier today with the announcement by the streaming giant that it was raising its subscription prices for the first time since 2023 against the backdrop of one of its most successful financial quarters since it launched its streaming service in 2007.
The reason this move seems counter intuitive is that the Netflix subscriber base now totals 302 million worldwide after having added 19 million new subscribers in the last quarter of 2024. This means that despite increased competition from Amazon Prime, MAX, Disney+, and others, Netflix is still the top dog in the subscription streaming landscape.
How did they achieve such a dramatic increase in the last 3 months of 2024?
The return of Iron Mike Tyson against Jake Paul drew over 100 million viewers worldwide and the premiere of the second season of “Squid Games” pulled in millions of new subscribers. Netflix ended the year with two NFL games on Christmas Day that attracted over 30 million viewers.
In a letter to investors Netflix stated: “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,”…
In its most recent financial report, Netflix’s revenue increased 16% last quarter, exceeding $10 billion for the first time in its history, while operating income totaled $2.3 billion, a 52% on-year increase. Netflix also announced a $15 billion stock buyback.
Of course, all the subscriber and financial success doesn’t mean that Netflix is just coasting along riding on its laurels. They are also investing heavily in production infrastructure that they hope will keep them on top.
A big part of that investment is the forthcoming Netflix Studios at Fort Monmouth that is located on the Jersey Shore. EIC Ian White owns a home 2 miles from the front gate of the new facility and has been reporting on the proposed movie/television studio with 12 soundstages for the past 2 years.
Netflix finally received clearance from local town councils to proceed and the State of New Jersey has negotiated a rather advantageous tax abatement for the studio as long as the facility remains open for a decade after the entire project is completed by 2028. Groundbreaking on this $900 million project begins in a few months.
Netflix Plan Features and Prices – 2025
| Netflix Plan Features | Standard with Ads | Standard Plan | Premium Plan |
| Price per month | $7.99 (Up from $6.99) | $17.99 (Up from $15.49) | $24.99 (Up from $22.99) |
| Max Resolution | Full HD (1080p) | Full HD (1080p) | 4K UHD (2160p) |
| HDR/Dolby Vision | – | – | Yes – When available |
| Dolby Atmos/Netflix Spatial Audio | – | – | Yes – When available |
| Number of Screens you can watch at the same time. | 2 | 2 | 4 |
| Number of phones/tablets you can store Netflix downloads on | 2 | 2 | 6 |
| Unlimited Movies, Shows, and Games | No – A lock icon will appear on unavailable titles. | Yes | Yes |
| Watch on TV, Laptop, Phone/Tablet | Yes | Yes | Yes |
| Extra Members Option | – | Add 1 extra member for $6.99 / month with ads or $8.99 / month without ads | Add up to 2 extra members for $6.99 each / month with ads or $8.99 each / month without ads |
Note: If you have Netflix with a package or through a third party, check with your provider to confirm if an ad-supported experience is available.
Additional Netflix Resources
- How To Sign Up for Netflix
- Netflix Payment Options
- You May Have To Pay Taxes
- How to Change Netflix Plans
- How to Cancel Netflix
The Bottom Line
Netflix has had its ups and downs but has demonstrated that it can adapt and succeed. Let’s face it, their crackdown on password sharing didn’t spell doom for the company, and neither did the implementation of an ad-supported tier decrease its popularity – in fact, both moves resulted in more subscribers overall In the long run.
However, between Netflix and other subscription-based streaming services, the price keeps going up – and as we have said before the cost of streaming can easily match or exceed the cost of cable.
Their project in New Jersey is a rather significant investment that will employ thousands of full-time employees and create billions of dollars for the Garden State once it is completed.
With programs like “Stranger things” coming to an end in 2025, Netflix will have to continue spending tens of millions on programming to remain on top. We don’t expect this to be the last of the increases.
Related Reading
