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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Netflix, the global online video streaming service (OTT), announced that it will raise subscription fees in several countries following the success of "Squid Game 2," which led to a surge in new subscribers.
According to the BBC on Tuesday (local time), Netflix gained 19 million new subscribers in the second half of last year and plans to increase prices in several regions.
The price hike will take place in countries including the United States, Canada, Argentina, and Portugal.
Netflix stated, "There will be cases where we ask members to pay additional fees," adding that the increased revenue will be used to improve and reinvest in content.
The recent subscriber growth is attributed to the success of the Korean drama "Squid Game 2" and the high-profile boxing match between influencer-turned-boxer Jake Paul and former world heavyweight champion Mike Tyson.
In the U.S., prices for almost all subscription plans will increase. The ad-free basic plan will rise from $15.49 to $17.99 per month. The ad-supported plan will now cost $7.99 per month, up by $1. This marks the first price hike in the U.S. in 15 months since October 2023.
Meanwhile, Netflix surpassed 300 million subscribers last year. While it initially projected 9.6 million new subscribers between October and December 2024, the actual growth exceeded expectations.
Netflix also announced that this would be the last time it reports quarterly subscriber growth figures, stating that it will now disclose paid membership updates only after achieving major milestones.
In addition to "Squid Game 2" and "Paul vs. Tyson," Netflix streamed two NFL games during Christmas and plans to offer more live broadcasts, such as WWE wrestling, in the future.
Paolo Pescatore, a tech analyst at PP Foresight, commented, "Netflix is solidifying its position by adjusting prices and leveraging its significantly stronger and more diverse lineup of programs compared to competitors."
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
