January 23, 2025, 4:38 pm | Read time: 4 minutes
Netflix is once again raising the prices for its subscriptions. Users in the USA, Canada, Portugal, and Argentina will have to pay up to 2.50 US dollars more per month in the future. This applies to both ad-financed and ad-free subscription models. German customers will be spared for the time being, but experts expect the rates to be adjusted here too soon.
Streaming giant Netflix has released its latest quarterly figures, boasting significant growth and impressive results. In the fourth quarter of 2024, during the holiday season, Netflix saw a surge of 18.9 million subscribers globally, with approximately five million coming from Europe and Africa alone. With this growth, the streaming provider broke the 300 million subscriber mark worldwide – a new record. Simultaneously, Netflix also disclosed plans for another price hike in 2025. New Netflix prices are set to take effect soon in select countries.
Overview
Netflix Increases Subscription Prices in First Countries
These countries include the USA, Canada, Argentina and Portugal. Remarkably, for the first time, Netflix is applying the 2025 price increase to its ad-supported subscription tier. In the USA, the price for this option will rise from 6.99 US dollars to 7.99 US dollars. The standard, ad-free subscription will see a future price of 17.99 US dollars, marking a 2.50 US dollar rise. The premium subscription, which offers 4K content, among other things, will also be 2 US dollars more expensive at 24.99 US dollars. Netflix’s price increase in January 2025 will be similar in Canada, Portugal, and Argentina.
The choice of countries is not surprising. Netflix has often made the first move here before extending the higher prices to other markets. Portugal is already a eurozone country. The DACH region, including Germany, remains unaffected for the time being, but the pricing policy could soon lead to changes in this country, too.
Netflix Justifies the Higher Prices
Netflix justifies the 2025 price increase with increased investments in content and technology. It is also necessary in order to continue to provide high-quality, exclusive series and films, the company said in a statement to investors. In recent years, Netflix has invested large sums in popular content or live events such as the boxing match between Mike Tyson and Jake Paul. This strategy has proven successful in attracting new customers as well as retaining existing subscribers. The second season of Squid Game, in particular, was responsible for the success in the fourth quarter of 2024. This title has become the streaming service’s most successful original series to date.
Another argument for the renewed price increase is the competition in the streaming market. Netflix emphasizes that higher revenues will allow it to compete better with rivals such as Disney+ or Amazon Prime Video. Moreover, the company aims to deliver substantial added value to its customers through these increased investments.
Will the Price Increase Come to Germany in 2025?
Although the 2025 price increase only applies to Netflix customers in the USA, Canada, Portugal, and Argentina for the time being, this could soon change. So far, the provider has often implemented price adjustments worldwide within a few months. In Germany, prices have remained stable since the last adjustment in April 2024.
In Germany, the ad-supported Standard subscription is priced at €4.99 per month, while the ad-free Standard and Premium subscriptions cost €13.99 and €19.99, respectively. The service phased out its budget-friendly basic subscription option in the summer of 2024. Compared to the countries mentioned, the subscription prices in Germany are therefore lower. At 4.99 euros, the costs for additional members in Germany are also rather low by international standards.
However, experts assume that a price increase similar to the one announced in January 2025 is also unavoidable in Germany, as Netflix relies on uniform pricing structures worldwide. Another factor is the increased use of streaming services in Europe, which makes the market more attractive for price adjustments.
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Netflix Wants to Focus More on Ad-Financed Models
Netflix is increasingly focusing on ad-financed subscriptions in order to reach new target groups and increase revenue per user. According to the company, in markets where this option is available, the majority of new customers opt for the cheaper ad-supported model. The ad-supported subscription model has been available since 2022 and offers Netflix the opportunity to generate additional revenue through advertising. Advertisements are an attractive source of income, especially during live events such as sports broadcasts. Companies pay high prices for commercials that are broadcast in these popular formats.
Netflix plans to expand the availability of this subscription in other markets in order to appeal to more customers. The focus will be on price-conscious users who were previously put off by the higher costs. This model is regarded as a cornerstone for sustained growth, unlocking a fresh revenue stream.