OPINION: Netflix is making money hand over first. I never want to see another price hike email pleading poverty about needing to ‘improve the service’.
After raising prices on customers around the world, Netflix has announced it made about $1 billion a month in profit to start 2025.
In its latest earnings report, Netflix recorded $10.5 billion in revenue and $2.9 billion in net income (i.e. profit) between January and the end of March.
The Hisense 43E6NTUK 4K TV is going cheap
The fact that you can now buy a 4K TV for under £200 is wild, making it a bargain buy for anyone after an affordable yet feature-packed smart TV.
View Deal
It was a 12.5 per cent growth in revenue was attributed to the higher subscription prices, and the company says it expects to see “the full quarter benefit from recent price changes and continued growth in membership and advertising revenue” in future.
Speaking of membership growth, we’re no longer going to be able to keep track of it because Netflix isn’t revealing subscriber numbers any more. At last count Netflix had got past the 300 million subscriber count globally, but now we’re only going to hear about it when the company hits major landmarks. However, if the prices keep going up, it’s unclear whether the number can keep going up.
In January, Netflix increased prices in the United States to reach a penny shy of $25 for the Premium plan with 4K video. A $2 increase, for viewers are watching on the best TVs.
The cheapest Netflix plan, the ad-supported plan, now costs $7.99 (up from $6.99). The standard tier with HD video and no ads is now $17.99, which saw a $2.50 increase on the previous price of $15.49.
A couple of weeks later, Netflix put UK prices up by £1-2 depending on which tier you subscribe to. Premium now maxes out at £18.99 a month. Canada, Argentina and Portugal also saw price increases and Netflix plans to do the same in France.
The usual excuse from Netflix goes something like: “We will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
However, the price increase is simply improving the portfolios of Netflix shareholders and making its major stakeholders very, very, very rich.
I’m not against people making a buck or two. But if Netflix is going to put a squeeze on people who are already being squeezed then at least be upfront about it.
