Netflix is upping its game and the prices for UK viewers too, with emails about the new rates already hitting inboxes. Following a similar price hike in the USA and other parts of the world, UK subscribers will have to tighten their belts.
The Standard tier is set to cost an extra £2 per month, now at £12.99, while Premium subscribers will see a £1 increase to £18.99 monthly. Even those on the budget-friendly plan, which includes ad-watching, face a £1 rise to £5.99 a month.
A spokesperson for Netflix explained the rationale: “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 reinvest to further improve Netflix.”
Adding another account for someone living outside your home will also amp up from £4.99 to £5.99 and for ad experiences from £3.99 to £4.99. This move mirrors an earlier price adjustment back in October 2023.
At January’s end, amidst boasting record earnings and wooing 19 million new subscribers recently, Netflix announced price escalations in the US and various countries. The streaming powerhouse, which aired the heavily streamed Jake Paul vs Mike Tyson fight in November, declared rate hikes for several plans in territories including the US, Canada, Portugal, and Argentina, reports Bristol Live.
Over in the United States, patrons were greeted with a one-dollar increment for the lowest-priced ad-based package, taking it up to $7.99 (equivalent to £6.46). .
US-based streaming giant Netflix enjoyed a remarkable year in 2024, raking in $39 billion (£31.5 billion) in revenue, a substantial increase from the $33.7 billion (£27.3 billion) recorded in 2023. Moreover, its operating income surged to an all-time high of $10.4 billion (£8.4 billion), up from $7 billion (£5.7 billion) the previous year.
The platform’s user base continued to expand, with more than 300 million global subscribers by the end of 2024, after gaining approximately 19 million new users in the final quarter. Hits like Bridgerton and Fool Me Once played a significant role in boosting the platform’s performance, offsetting the slower start to the year due to major actor and writers’ strikes in the US.
In addition to its popular English-language content, Netflix also found success with non-English shows such as Korean drama Squid Game and Spanish film Society Of The Snow, as well as the US crime drama series Monsters: The Lyle And Erik Menendez Story. The platform’s new live-programming offerings, including NFL games on Christmas Day and the recently secured US rights for the Fifa Women’s World Cup in 2027 and 2031, were also attracting viewers.
AJ Bell investment analyst Dan Coatsworth applauded Netflix’s performance, saying: “Netflix has proved its success is not waning – it is going from strength to strength and continues to be king of the streaming platforms. It’s not a surprise that Netflix feels comfortable in raising prices. Customers love its content, so strike while the iron is hot and get them to pay more.
“Netflix has been spreading its wings to offer more diversified content. Sports and games now comfortably sit alongside films and TV shows, making Netflix a broader entertainment hub. It means there is something for everyone and the company clearly feels this is worth a higher monthly subscription price.”
Ernest Doku, streaming and broadband expert at Uswitch.com, said: “Netflix’s price rise announcement will be frustrating news for its UK customers. With prices rising for the first time on its cheapest ad-supported tier – stretching to £2 for Standard users – the reaction has been decidedly mixed, especially as we saw price hikes on the popular streaming service as recently as October 2023.
“Netflix is certainly enjoying a dominant position in the streaming wars, and this latest round of price rises both highlights the increasing cost to compete, as well as its power to charge higher fees to lend access to some of the world’s most popular content. It’s worth noting that if you have Netflix included as part of your broadband package it’s likely you will also see this increase applied or baked into your bill in the near future.
“If you feel you aren’t getting value for money from your subscription you can cancel penalty-free whenever you want. Alternatively, if you feel Netflix’s price rise is too steep, there are several free streaming services that are worth investigating, including Tubi and Channel 4 on Demand.”
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