{"id":221307,"date":"2025-01-22T19:15:00","date_gmt":"2025-01-22T19:15:00","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=221307"},"modified":"2025-01-22T19:22:24","modified_gmt":"2025-01-22T19:22:24","slug":"with-latest-price-increase-netflixs-standard-account-now-costs-72-more-per-year-than-spotify-in-the-us","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/with-latest-price-increase-netflixs-standard-account-now-costs-72-more-per-year-than-spotify-in-the-us\/","title":{"rendered":"With latest price increase, Netflix’s Standard subscription now costs $72 more per year than Spotify Premium in the US"},"content":{"rendered":"

Netflix has raised its subscription prices in the US for the first time in nearly a year-and-a-half<\/a>, further widening the price gap between the video streaming giant and music streaming leader Spotify.<\/p>\n

Under its latest US pricing, Netflix is increasing the cost of its ad-free Standard plan, which allows for two simultaneous HD streams, by $2.50 <\/b>per month, to $17.99 <\/b>from $15.49<\/b>.<\/p>\n

The Premium tier, meanwhile, now costs $24.99<\/b>, up $2 from $22.99<\/b>.<\/p>\n

<\/div>
<\/div>
<\/div> <\/div> \n

As a result, subscribing to Netflix’s Standard tier will now cost you approximately $72<\/strong> more per year than subscribing to Spotify’s individual Premium (at $11.99 per month).<\/p>\n

Meanwhile, Netflix’s Premium tier, at that $24.99pm<\/strong> price point, costs more than double Spotify’s flagship individual tier, or $132<\/strong> more per year.<\/p>\n

Netflix’s latest price adjustment widens an already significant gap with Spotify, which raised<\/a> its Premium subscription by $1<\/strong> per month to $11.99<\/b> in June 2024.<\/p>\n

Meanwhile, Netflix is also raising the price of its ad-supported tier, which now costs $7.99 <\/b>per month, up from $6.99 <\/b>previously.<\/p>\n

\n
<\/a><\/figure>

A history of Spotify and Netflix’s US pricing (source: MBW)<\/em><\/p>\n

\n

Netflix announced its latest price hike on Tuesday (January 21) as it released<\/a> its Q4 2024 results, revealing an 18.9-million<\/b> increase in the number of paying subscribers in the quarter alone, more than tripling the 5.1-million<\/b> increase in Q3 2024.<\/p>\n

As a result, Netflix now boasts over 300 million<\/strong> paying subscribers \u2013 301.63 million<\/strong>, to be precise.<\/p>\n

\n
<\/a><\/figure>\n
\n

Netflix<\/strong> attributed the price increase to its ongoing investment in programming and delivering \u201cmore value for our members.\u201d<\/p>\n

\n

\u201cWe will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”<\/p>\n

Netflix<\/span><\/p><\/blockquote>\n

\u201cWe will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,\u201d Netflix<\/strong> said in a letter to shareholders.<\/p>\n

Aside from the US, Netflix is also adjusting prices in Canada, Portugal, and Argentina.<\/p>\n

<\/div> <\/div> <\/p>\n

During an earnings call, Gregory K. Peters<\/strong>, Netflix\u2019s Co-CEO, President & Director, said: \u201cWe look to continue to provide more value to our members, seeking to wisely invest to increase the variety and quality of our entertainment offering. And then we listen to those members.<\/p>\n

“We listen for signals like engagement, retention, acquisition. There’s more secondary signals as well, all to tell us when we’ve achieved that increase in value. And when we’ve done that, then we ask them to pay a bit more to keep that virtuous cycle going.\u201d<\/p>\n

\n

\u201cWe look to continue to provide more value to our members, seeking to wisely invest to increase the variety and quality of our entertainment offering.”<\/p>\n

Gregory K. Peters<\/b>, Netflix<\/span><\/p>\n<\/blockquote>\n

Peters told analysts during the company\u2019s earnings call that Netflix’s<\/strong> ad-supported tier continues to prove popular among subscribers.<\/p>\n

\u201cWe love our ads plan because it allows us to offer a lower price point for consumers. That’s more choice, good accessibility\u2026 It means that we obviously have more people that can sign up and enjoy a growing range of entertainment that we’ve got to offer.\u201d<\/p>\n

<\/div> <\/div> <\/p>\n

Netflix noted that its ads plan accounted for over 55%<\/b> of sign-ups, with memberships in this tier growing nearly 30% <\/b>quarter over quarter. As a result, the platform is offering a new tier called Extra Member with Ads, in 10 of the 12 markets where it offers an ad-supported tier. The new plan allows Netflix subscribers with a Standard or Premium plan to add a household to their plan, at a price point that is $1 less per month than the Standard with Ads plan.<\/p>\n

In Q4, Netflix\u2019s revenue jumped 16%<\/b> YoY<\/strong><\/span> (or 19%<\/strong><\/span> excluding the impact of foreign exchange rate movements) to $10.25 billion<\/b> from $8.83 billion<\/b> in Q4 2023. Net income climbed to $1.87 billion <\/b>from $938 million<\/b>.<\/p>\n

Following the price hikes, Netflix expects to record an 11.2% YoY<\/strong><\/span> jump in revenue to $10.42 billion<\/b>. For the full year, revenue is expected to range between $43.5 billion<\/b> and $44.5 billion<\/b>, up by about $500 million<\/b> from the company\u2019s previous guidance.<\/p>\n

\u201cIn Q1\u201925, we expect revenue growth of 11% <\/b><\/span>(14% F\/X neutral), which is modestly below our full year guidance due to the timing of price changes and the seasonality of our ads business,\u201d Netflix said.<\/p>\n","protected":false},"excerpt":{"rendered":"

There once was a time when a Netflix subscription actually cost less than Spotify<\/p>\n","protected":false},"author":38,"featured_media":221336,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[1295,131237,130977,108,130964],"class_list":["post-221307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-netflix","tag-price-hike","tag-price-hikes","tag-spotify","tag-spotify-price"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/221307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=221307"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/221307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/221336"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=221307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=221307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=221307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}