Netflix raises prices for all US plans. Here’s what to know

(NEW YORK) — Shares of Netflix soared 12% in early trading on Wednesday, just hours after the streaming giant announced price increases set to impact all of the company’s U.S. subscribers.

The standard monthly subscription without advertisements will climb from $15.49 to $17.99, and a standard monthly subscription with ads will increase one dollar to $7.99, Netflix said.

The price hikes arrived alongside a stellar earnings report that showed the largest subscriber gains over a three-month period since the company’s founding more than a quarter-century ago.

Netflix added 19 million subscribers over the last quarter of 2024, vaulting the company to 302 million subscribers worldwide. Revenue jumped 16% over the final three months of 2024 compared to a year earlier, topping $10 billion in a single quarter for the first time.

“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,” Netflix said in a letter to investors.

The second season of hit show “Squid Game” helped propel the subscriber bounce, Netflix said, noting that the series is on pace to be the most-watched season of original programming in the company’s history.

Netflix also found success in the latter part of 2024 with the holiday movie “Carry On” and a live boxing match between influencer Jake Paul and former heavyweight champion Mike Tyson, the company said.

“It’s great that all these big swings worked very well in the quarter,” Netflix co-CEO Ted Sarandos said on a conference call with investors on Tuesday.

The price hikes at Netflix follow a string of price jumps imposed by competitors last year.

In August, Disney announced price increases for streaming services Disney+, Hulu and ESPN+ that amounted to hikes of between $1 or $2 for each platform. Two months earlier, Warner Bros. Discovery’s Max increased prices for its ad-free membership by $1 per month. (Disney is the parent company of ABC News.)

Stock analysts lauded Netflix in memos to clients on Wednesday.

In a note shared with ABC News, Bank of America Global Research described the earnings report as “very strong.”

Tigress Financial, a New York City-based advisory firm, said Netflix’s performance foretells further increases in the company’s share price.

“The incredible power of its subscriber growth and subscriber base will continue to drive further gains in the stock,” Tigress Financial wrote in a letter shared with ABC News.

Netflix led all studios with 36 nominations for the Golden Globes, which took place earlier this month. “Emilia Pérez,” a film starring Zoe Saldaña and Selena Gomez, won four awards, including best motion picture – musical or comedy.

Speaking to investors on Tuesday, Sarandos said the wildfires in Los Angeles would not delay the company’s releases this year or reduce anticipated revenue.

“No meaningful delays in the delivery of the projects and no meaningful impact to the cash in 2025, but very meaningful disruption in people’s lives,” Sarandos said.

“So, our goal is to keep everything on schedule safely, be mindful of folks who need time to work through the challenges of the fires, including, in some cases, loss of life and home. But this industry has been through a really tough couple of years, starting with COVID, going into the strikes, and now this,” Sarandos added.

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