Netflix Raises Membership Rates, Which Causes a Stock Frenzy.

(VOR News) – According to the streaming service’s statement, Netflix has revealed that a sizable portion of its membership plans in the US and Canada would see price increases.

In response to a remarkable increase in customer volume in the fourth quarter of 2024, the company decided that it was essential to put this decision into effect. With an extra 19 million consumers signing up for the broad streaming service, the total number of users worldwide has hit 302 million. With this, there are now 302 million users overall.

The unmatched popularity of live events, such as the Mike Tyson vs. Jake Paul boxing battle, which attracted 108 million viewers and became the most-streamed athletic event in history.

Resulted in Netflix’s largest subscription growth to date.

In addition, two National Football League games played on Christmas Day attracted previously unheard-of viewership on the site. In the same time frame, 68 million people watched the first week of “The Squid Game”‘s second season when it was made available to the general public.

After the streaming behemoth revealed on Tuesday that it had a record number of subscribers during the Christmas quarter, Netflix’s shares rose 14.3% during Wednesday’s early trading session in Frankfurt.

This comes as the streaming behemoth said that its user base reached a record high for the quarter. Given that Netflix has previously made the announcement public, the announcement was made.

Due to the acquisition of 18.9 million users in the fourth quarter, the firm has made the decision to increase the rates of its services in the United States, Canada, Portugal, and Argentina. Following the company’s purchase of these clients, this decision was taken.

Following a 1.35 percent closing price during regular trading hours, the company’s shares saw a 10% gain during Tuesday’s after-hours trading. This happened after a 1.35 percent closing price for the shares. At this very moment, the company’s stock was trading.

The normal monthly subscription package, which does not include commercials, is now $17.99 instead of $15.49. The membership cost goes up as a result of this. The edition that contains commercials, on the other hand, will cost $7.99 during this period, a one-dollar increase.

The premium package will now cost $24.99, which is $2 more than it did before. This is because the addition of 4K quality has resulted in a price hike.

Netflix justified its price hike by saying it needed to invest in new shows.

The price rise was therefore justified. The most recent quarter saw 16% growth in revenue, bringing the company’s total revenue beyond $10 billion for the first time.

It’s also crucial to remember that the business made $2.3 billion in operating income during this time. A thirteen percent rise in Netflix’s shares was directly linked to the remark.

As demonstrated by a larger trend in the streaming industry, where other businesses like Disney, Max, and Apple have raised their membership fees, the strategy aligns with the goal to raise pricing. This trend suggests that other organizations’ membership rates are rising.

The reciprocal compatibility of the strategy and the plan is demonstrated by this pattern. In 2022, Netflix raised the price of its paid services for the first time.

Additionally, in addition to the changes that have been made, Netflix will no longer give quarterly information on premium subscribers. From now on, it will start sending out a “engagement report” every six months.

Netflix co-CEO Ted Sarandos emphasized the growing importance of live events and sports in the company’s long-term growth plan. This will help the company succeed in the future, he said.

The organization’s overall expansion strategy includes this. Even though the number of businesses that compete with Netflix has grown, the streaming giant has managed to hold onto its dominant position

SOURCE: TN

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