From CNBC:

Netflix plans to ask members to pay a little extra to reflect improvements in the service, after announcing a record 13.1 million new subscribers in the fourth quarter. The streaming giant currently has more than 260 million global subscribers and has 23 million monthly active users on its advertising tier. Expect a price increase in the future as the company looks to leverage its growing content library to convince users to pay more.

In a bold move to expand its live entertainment offerings, Netflix announced a deal to stream WWE’s Raw starting in 2025, marking its biggest foray into live content yet. This comes as the company continues to increase its content amortization by a “high single digit percentage year over year,” indicating a push for more exclusive and compelling content. Additionally, the debut of Disney’s higher-priced direct-to-consumer ESPN service later this year or in 2025 could provide cover for Netflix to raise prices, as consumers might view its offerings as a better price-to-value proposition compared to competitive streamers.

The standard Netflix subscription in the U.S. currently costs $15.49 per month, while the ad tier, launched in 2022, costs $6.99 a month. Despite the potential price hike, it remains to be seen whether most of its audience is content with paying what Netflix is charging. This move may have pros and cons for the company, as it tries to balance its user base’s tolerance for price increases with the need to continue investing in and improving its service. Keep an eye out for a pending price hike, as the company didn’t announce one in its quarterly letter but did hint at its inevitability.



Read more: Netflix is preparing investors and users for more price hikes in 2024