Netflix boosts subscription prices after Q2 profit surges 45% year-on-year, reaching $3.1 billion on strong content and ad revenue growth (Netflix)
Netflix subscribers in Australia are set to pay more, with the streaming giant implementing an average increase of 10 percent; the second time the company hiked the fees in a little over a year. The cheapest plan, Standard with Ads, has been increased from $7.99 to $9.99 a month and the ad-free Standard plan has gone up from $18.99 to $20.99. Premium's price is now up to $28.99 from $25.99, which is the largest hike among all options.
Extra charges for the addition of a member have been revised as well. Adding a member within an ad-supported account now costs $6.99 per month, up from an earlier $5.99, and for ad-free accounts, the charge has jumped from $7.99 to $8.99.
As of early 2024, the cost for the plan used to be $6.99, which makes it a 43% increase in comparison to the Standard with Ads option, while ad-free subscriptions are up by about 25%.
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The announcement follows Netflix's stellar second-quarter report, with profits soaring 45% over the previous year to $3.1 billion. Revenue for the quarter increased 16% to $11.1 billion, exceeding expectations on both Wall Street and its own guidance.
According to Netflix, the growth was the result of the raised subscription prices, the successful line-up of content, and the accelerated growth of ad-subscribed service. The company has revised its revenue outlook for 2025 to the range of between $44.8 billion and $45.2 billion, from a previously estimated $43.5-44.5 billion.
Season 3 of Squid Game amassed 122 million views, making it Netflix's sixth most-watched season ever. Other success stories include 53 million views for Ginny & Georgia Season 3, 56 million views for Sirens, and animated smash KPop Demon Hunters achieving 80 million views. Korean productions continue to lead the pack, giving credence to Netflix's huge investment in international content.
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The second half of 2025 is expected to bring in even bigger numbers with the much-anticipated return of Wednesday Season 2, the final season of Stranger Things, and films by celebrated directors Kathryn Bigelow and Guillermo del Toro. Netflix is also moving into greater coverage of live sports such as major boxing events and NFL games.
Despite the constant criticism of its frequent price hikes, investor sentiment looks strong. Netflix shares are up over 40% year to date, supported by its crackdown on password sharing and the growth of ad-supported plans. While the company no longer reports subscriber numbers, it will continue to track its success on engagement metrics such as total viewing hours.
Netflix has projected ad revenue in 2025 at nearly double that for 2024, and by 2030 aims to get around $9 billion a year from ad-based subscriptions. For the Australians, the question still lingers, is the new pricing worth a binge?
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