Netflix is raising prices across its existing U.S. plans, aiming to capitalize on surging demand after the streaming service posted sharp subscriber gains in the fourth quarter.
The company’s ad-supported tier will cost $7.99 a month, up from $6.99, while the cost of the premium tier is increasing by $2, to $24.99.
Netflix said Tuesday that it brought in 18.9 million new subscribers in the fourth quarter, a 44% jump from a year earlier, and raised its 2025 revenue guidance slightly.
The company reported revenue of $10.25 billion for the latest quarter, beating its own projection of $10.1 billion. In the fall, the streamer raised prices in Italy and Spain, and on Tuesday Netflix said it would raise prices on most of its plans in the U.S., Canada, Argentina and Portugal. Netflix last raised prices in the U.S. in October 2023.
Netflix increased its annual revenue projection to between $43.5 billion and $44.5 billion, from its prior forecast of $43 to $44 billion.
Net profit rose to $1.87 billion in the fourth quarter, up from $938 million a year earlier, beating the company’s forecast of $1.85 billion.
Netflix ended the fourth quarter with 301.6 million subscribers. The company has said this is the last time it will disclose quarterly subscriber numbers.
The jump in subscribers comes as fans flocked to watch the second season of “Squid Games,” which was released in the final week of the quarter and has become one of Netflix’s most-watched original series seasons. The action thriller “Carry-On” vaulted into the Top 10 all-time films on the streaming service.
The company has also pushed deeper into live streaming events, as it seeks to grow the ad-supported tier that was off to a slow start since its 2022 launch. In the fourth quarter, Netflix live-streamed a heavyweight boxing match between Jake Paul and Mike Tyson, which despite technical hiccups, drew 60 million households globally.