Brits rejoice! Netflix confirms price rise for millions, but UK subscribers avoid paying more
Britons will swerve a price hike coming to Netflix subscribers in the United States, Canada, and several other countries …at least for now.
Netflix confirmed the incoming price rise during its latest earnings call. It told shareholders that it had added a staggering 18.9 million subscribers in the last three months of 2024, bringing its total number of subscribers to over 300 million worldwide.
On average, Netflix now commands two hours of viewing time every day per paid members, according to company executives.
The surge in subscribers at the end of last year was primarily driven by an expanding live sports portfolio, with its Jake Paul vs. Mike Tyson boxing match becoming its most-streamed sporting event in history with 108 million viewers. Remember — if you watched this event, or other live broadcasts on Netflix in the UK, you’ll need to be covered by a TV Licence. Yes, really.
The second season of dystopian thriller Squid Game has also proven a major draw, with Netflix reporting it is on track to become one of its most-watched original series. Other hits from the streamer include Stranger Things, The Crown, Bridgerton, You, Emily In Paris, and Baby Reindeer.
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With subscriber numbers soaring and a swathe of live broadcasts and hit boxsets scheduled for the coming year, Netflix has announced price increases across multiple markets, including the United States, Canada, Portugal and Argentina.
Under the new plans, Netflix’s Standard Plan — the most affordable plan without adverts — will rise from $15.49 to $17.99 per month in the United States, whilst its cheapest, ad-supported subscription tier will increase by $1 to a maximum of $7.99 per month.
The maxed-out Premium subscription tier will now cost $24.99 monthly, marking a $2 increase.
This plan lets subscribers watch on four supported devices at a time, stream in 4K Ultra HD picture quality, and download shows and films for offline viewing on a maximum of six devices at a time.
Standard and Premium plans offer the ability to add an extra person outside of your household who enjoys all of the same benefits.
Netflix started to crack down on password sharing outside households — a major shift from its previously lax approach — worldwide from May 2023, affecting over 100 countries including the US, UK, and Australia. Here’s how the policy works:
Netflix now defines a “household” as people living together at the same locationThe primary account holder must set a “primary location” based on IP addressUsers outside this household can no longer freely access the accountNetflix uses IP addresses, device IDs, and account activity to detect non-household usersTo continue sharing, account holders have options:Add an “extra member” for an additional fee Non-household members can transfer their profile to a new, separate account
This contrasts sharply with Netflix’s previous stance. The company once tweeted in 2017, “Love is sharing a password,” embracing the practice. Facing a plummeting subscribe base in 2022, Netflix estimated 100 million accounts were sharing passwords, prompting this strategic shift.
The crackdown has proven very successful, and Netflix added millions of paid subscribers since then. The company now frames this as “paid sharing,” positioning it as a service enhancement rather than a restriction. It’s prompted other streamers, like Disney+, to cite the policy as direct inspiration for introducing its own password-sharing restrictions.
Netflix justified the price adjustments, stating: “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.”
The company has not confirmed whether UK subscribers will face similar increases. Current UK prices remain at £4.99 for the ad-supported plan, £10.99 for standard without ads, and £17.99 for premium accounts.
Netflix typically increases its plan costs by $1 or $2 per month.
The record subscriber growth saw Netflix add 41 million new users throughout 2024, surpassing its previous best year of 2020 when pandemic lockdowns drove 36.6 million new subscriptions.
The streaming service reported fourth-quarter earnings of $1.87 billion on revenue of $10.25 billion, marking double-digit growth from the previous year. The Californian company’s ad-supported plans accounted for more than 55% of new signups in markets where they are available, growing nearly 30% from the previous quarter.
Forrester Research analyst Mike Proulx noted that live programming is becoming Netflix’s “secret ingredient” in widening its lead over streaming rivals. The company will continue its sports expansion with 52 weeks of WWE programming and more NFL games on Christmas Day in 2025.
Netflix appears confident the price increases won’t trigger mass cancellations — and even raised its revenue outlook.
“When you’re going to ask for a price increase, you better make sure you have the goods and the engagement to back it up,” Netflix co-CEO Ted Sarandos told analysts during the call.
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Netflix now forecasts 2025 revenue between $43.5 billion and $44.5 billion, reflecting improved business fundamentals. Annual operating income exceeded $10 billion for the first time in the company’s history.
“Netflix is simply running away with the streaming market thanks to excellent execution, a stellar content slate, and scale advantages,” Evercore ISI analysts noted. Morgan Stanley analysts highlighted that Netflix’s “unmatched scale creates the financial capacity to invest back into the business.”