Netflix is hiking prices on its US subscription plans as it looks to cash in on soaring demand after another jump in subscribers at the end of last year. The ad-supported plan will rise by $1 to $7.99 per month, which is a 14 per cent rise. The standard ad-free tiers goes from $15.49 to $17.99. The highest-priced premium tier is increasing by $2 to $24.99.

Price hikes will hit almost immediately, and go into effect during subscribers' next monthly payment. The last price rise was in October 2023. And it is the first increase to the entry-level ad-supported tier since it launched in 2022. Netflix added 18.9 million subscribers in its holiday quarter, blowing past Wall Street's forecasts, to take the total 301.6 million. Shares soared more than ten percent on the news.

Live sporting events and the return of its popular South Korean series 'Squid Game' were key to attracting a record number of new customers. In a sign that Netflix is confident the price increases won't trigger a backlash resulting in mass cancellations, Netflix slightly raised its revenue outlook for this year to $44 billion. That would translate into a roughly 13 percent increase from last year. The streaming giant said that as it continues to invest in programming that its members value, it will increase prices for the service for most plans in the U.S., Canada, Portugal and Argentina. Netflix said its fourth-quarter programming slate surpassed its internal expectations.

The Jake Paul vs. Mike Tyson boxing match becoming the most-streamed sporting event and the two NFL games on Christmas Day delivering two of the most-streamed competitions in league history. The service also benefited from the second season of its dystopian thriller ' Squid Game,' which the company said is on track to become one of its most-watched original series. The company has the lowest rate of cancellations among the subscription streaming services, with a churn rate of 1.8 percent in December, according to researcher Antenna.

This quarter will also mark the last time Netflix reports subscriber additions, as the company emphasizes other performance metrics including revenue and profit - a change analysts attribute to slowing subscriber growth. Netflix is the latest to raise prices as TV streamers seek to turn a profit on businesses that until now have lost money. Streaming services have invested heavily in big budget shows while offering low-cost subscriptions, but investors now want returns.

Disney's price hikes for its streaming plans in America took effect in October - just a year after the last hike . Rises affect Disney+, Hulu and ESPN - the three streaming services run by the entertainment giant. Disney+ with ads rose from $7.99 to $9.99 a month, marking a 25 percent hike. The ad-free version is now $15.99, up by $2. At Hulu, the ad-supported plan has increased by $2 to $9.99, while the ad-free option has gone up $1 to $18.99.

Peacock raised prices starting July 19 by 33 per cent. The monthly rate for its standard service - confusingly called ‘Premium’ - increased by $2 to $7.99, and the annual fee went up by $20 to $79.99. In late June, Paramount+ Essential announced a $2 increase to $7.99 for new customers, also a 33 percent hike. Current customers will keep their rates.

Earlier in June, Warner Bros. Discovery raised its ad-free Max subscription price for the second time this year. The $1 price rise to $16.99 a month for the ad-free tier took effect last month for new subscribers. The 'ultimate' ad-free option, which offers 4k streaming and the ability to run four accounts at the same time, will also be raised by a $1 to $20.99. Spotify also announced last month that the cost of its Individual ad-free premium subscription plan in the US will go up by $1 a month to $11.99.

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