Netflix Implements Another Price Increase

The streaming powerhouse, Netflix, is once again raising its prices.

The cost of the standard ad-supported tier in the U.S. will rise to $7.99 per month, up from $6.99. Meanwhile, the premium tier will see an increase of $2, bringing it to $24.99. Additionally, the standard plan will now cost $17.99, up from $15.49.

The fee for adding an extra member to an ad-free plan will also increase to $8.99, up from $7.99.

These price adjustments will affect most plans in the U.S., Canada, Portugal, and Argentina. New customers will see these changes starting Tuesday, while existing customers will experience the adjustments in their next billing cycle.

This marks the first price hike for the ad-supported tier. The last significant increase in the U.S. occurred in October 2023, when Netflix raised the standard plan from $9.99 to $11.99 per month and increased the premium price from $19.99 to $22.99.

Furthermore, Netflix is expanding its Extra Member with Ads plan in 10 out of the 12 countries where it offers an ad-supported option, maintaining the price at $6.99.

Netflix attributes these price hikes to its growing investment in programming.

“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can reinvest to further enhance Netflix,” stated the company in its shareholder letter.

Currently, Netflix spends approximately $17 billion annually on content. Executives have indicated that they expect this figure to remain relatively stable. However, the company is also investing in more live sporting events, including high-profile matchups like Mike Tyson vs. Logan Paul, NFL Christmas Day games, and WWE’s weekly show, Raw.

During the earnings call, Netflix Co-CEO Ted Sarandos highlighted the upcoming content lineup, which includes new seasons of popular shows like Wednesday, Stranger Things, and Squid Game, along with films from renowned directors such as Guillermo del Toro, Catherine Bigelow, Noah Baumbach, and the Russo brothers, plus a new installment of Knives Out. Netflix is also set to host the SAG Awards next month.

“When you’re going to ask for a price increase, you better ensure you have the goods and the engagement to back it up. I feel confident about what we have lined up for 2025,” Sarandos remarked.

This announcement comes on the heels of Netflix reporting a record-breaking addition of 19 million subscribers in the fourth quarter, bringing its total to 302 million subscribers. The company reported $10.2 billion in revenue and an operating income of $2.3 billion.

Co-CEO Greg Peters emphasized that the company’s pricing philosophy remains unchanged, asserting that the pricing for the standard ad-supported plans provides a “highly accessible entry point.”

“We aim to continually offer more value to our members by investing wisely to enhance the variety and quality of our entertainment offerings. We also pay close attention to member feedback, including engagement, retention, and acquisition metrics, to gauge when we’ve successfully increased value. When we achieve that, we ask them to contribute a bit more to sustain that virtuous cycle,” Peters explained.

Persons

Ted Sarandos, Greg Peters, Mike Tyson, Logan Paul, Guillermo del Toro, Catherine Bigelow, Noah Baumbach, Russo brothers

Company Names

Netflix

Titles

Wednesday, Stranger Things, Squid Game, Knives Out, SAG Awards

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