Netflix(NFLX) Deadline·2025-01-21 21:35Core Viewpoint - Netflix is increasing subscription prices in the U.S. and other regions, leveraging recent subscriber growth to enhance profit margins [1][4]. Pricing Changes - The low-cost advertising tier will rise to 6.99, the Standard plan will increase to 15.49, and the Premium plan will go up by 24.99 [2]. - The additional charge for adding another subscriber to the ad tier remains unchanged at $6.99 [2]. Subscriber Growth - The price adjustments come after Netflix reported a record addition of 19 million subscribers in the fourth quarter ending December 31 [3]. - The advertising tier accounted for 55% of all sign-ups during the quarter, with over 70 million monthly active users reported [5]. Strategic Rationale - The company aims to reinvest in programming and enhance value for members, justifying the price increases [3]. - Historically, while there may be short-term cancellations following price hikes, most subscribers tend to remain, and new sign-ups are more valuable at higher price points [4].