Netflix has announced price increases following their strong Q4 2024 earnings report, showing revenue of $10.25 billion (up 16% YoY) and nearly 302 million worldwide paid memberships (up 15.9% YoY).

The new pricing structure in the United States will be:

• Ad-supported tier: $7.99 (up from $6.99)
• Standard ad-free package: $17.99 (up from $15.49)
• Premium 4K plan: $24.99 (up from $22.99)

This price increase comes as Netflix expands its content offerings, with plans to develop more live programming and games throughout 2024. The company recently released a Sabrina Carpenter Christmas special and has announced an upcoming Karol G biopic for 2025.

The move raises questions about potential price increases from competitors in both video and music streaming services. Currently, Spotify charges $11.99 for its Individual plan in the US, while Apple Music costs $10.99 for a similar tier. Spotify is reportedly developing a "Deluxe" tier priced around $20 monthly, featuring AI tools and higher-definition audio.

Music streaming platforms face different challenges than video services due to overlapping content libraries. However, exclusive content deals, such as Amazon Music's "artist-centric" Universal Music partnership and Apple Music's Classical offering, could influence future pricing strategies.

Netflix stock responded positively to the announcement, with shares rising approximately 14% in after-hours trading to around $1,000 per share.

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