Netflix hikes subscription fees in the United States and other territories, including the first increase for its ad-supported plan.
Standard plan going up by $2.50 to $17.99 per month in the United States
The streamer announced the pricing increases alongside its Q4 2024 earnings results on Tuesday, when it reported its largest-ever quarterly increase in subscribers, with a gain of 18.9 million.
Under the new pricing in the United States, Netflix’s Standard plan without commercials will increase by $2.50 per month, from $15.49 to $17.99. Netflix raised the price of its Standard tier, which allows for two simultaneous HD views, three years ago.
In addition, Netflix’s ad-supported tier will now cost $7.99 per month, up from $6.99. The Premium tier, which supports four simultaneous broadcasts, will cost $24.99 monthly, up $2. Adding an Extra Member to a primary account now costs $8.99 per month, up from $7.99.
“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 re-invest to improve Netflix further,” the firm stated in its quarterly letter to investors.
“To that end, we are adjusting prices today across most plans in the U.S., Canada, Portugal, and Argentina (which was already factored into the 2025 guidance we provided in October 2024).”
During the results call with investors, co-CEO Greg Peters stated, “We believe that our starting price” for Standard With Ads, even after the price hike, “is an incredible entertainment value.” And it’s a very accessible entrance point.”
In October 2023, Netflix raised the Basic plan price from $9.99 to $11.99 per month in the United States while raising the Premium price from $19.99 to $22.99.
(The Basic plan is no longer available in the United States and some other markets; instead, the “Standard With Ads” tier serves as the entry-level alternative.) At the time, the streamer’s ad-supported bundle cost $6.99 a month in the United States, while the Standard package cost $15.49.
Netflix last raised the price of the Standard plan in the United States in January 2022.
In reporting Q4 profits and pricing increases, Netflix increased its 2025 revenue prediction to $43.5 billion to $44.5 billion (up $500 million from its previous forecast) and operating margin to 29%, up one percentage point of the prior forecast.
“Netflix reaffirms its leadership position and is running away with the streaming market,” said Paolo Pescatore, analyst and founder of PP Foresight, in response to the Q4 earnings.
“It is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate than rivals.”
Netflix did not raise subscription prices in 2024, but executives stated repeatedly last year that rate increases were on the table.
On Tuesday, the company announced that ad-supported plans accounted for more than 55% of sign-ups in its ad countries in Q4, with membership in the ad plan increasing by nearly 30% quarter over quarter.
Netflix also announced on Tuesday an “Extra Member With Ads” program in ten of the twelve countries where it has an ad plan “to give our members additional choice and flexibility.”
“We are on target to achieve sufficient size for advertisement members in all our ad nations by 2025. In its investor letter, the firm stated that one of its major priorities for 2025 is strengthening its offering for advertisers to increase its advertising revenue significantly.
JOIN THE CONVERSATION→ Telegram | X/Twitter | Facebook | WhatsApp|WhatsApp Channel|Mobile App|Instagram
