Netflix to hike prices in 2024

TheStreet's J.D. Durkin brings you the biggest news of the day, including why Netflix announced it will once again be raising prices.

Transcript

00:00 I'm JD Durkin reporting from the New York Stock Exchange and here's a look at what we

00:03 are watching on the street today.

00:05 Stocks are reacting positively to Netflix's fourth quarter.

00:08 The streaming giant posted strong results with subscribers surging to an all-time high

00:12 of 260 million last quarter.

00:16 The company saw its stock pop nearly 10 percent on the report.

00:20 Earnings will remain in focus when Tesla and IBM release results after the bell on Wednesday.

00:26 Sticking with Netflix, buried in its fourth quarter letter to shareholders, the company

00:29 let subscribers know it would be asking a little more from them in 2024, with the company

00:35 saying quote, "As we invest in and improve Netflix, we'll occasionally ask our members

00:40 to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel

00:45 of additional investment to further improve and grow our service."

00:50 One reason for the price hike could be how much Netflix is paying to make new content.

00:54 The company says it plans on spending $17 billion this year to make new content for

01:00 its catalog.

01:01 The company also announced it would be getting rid of its cheapest ad-free plan, which costs

01:06 $11.99 per month.

01:08 Despite the plan not being offered to new users, Netflix says it will also no longer

01:12 offer the option in countries where ad-supported plans are available.

01:17 The cheapest ad-free option remaining will now be $15.49.

01:22 The company added more than 13 million subscribers in Q4, beating Wall Street's expectations.

01:26 It was the best fourth quarter for the company to date, with its ad-tier subscriptions increasing

01:32 by nearly 70% from Q3.

01:34 The streaming giant also beat revenue predictions with a 12.5% jump year over year.

01:40 That will do it for your daily briefing.

01:41 From the floor of the New York Stock Exchange, I'm J.D. Durkin with the Street.

01:44 Thanks for watching.

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