Netflix is increasing subscription prices in the U.S. and other markets — including the first hike on its ad-supported plan.
The streamer revealed the price increases along with its Q4 2024 earnings results Tuesday, when it announced its biggest-ever quarterly increase in subscribers with a gain of 18.9 million for the period.
Under the new pricing in the U.S., Netflix’s Standard plan without ads will rise by $2.50 — going from $15.49 to $17.99 per month. It’s been three years since Netflix upped the pricing of the Standard tier, which provides two simultaneous HD streams.
In addition, Netflix’s ad-supported tier will cost $7.99 per month, up $1 from $6.99. The price of the Premium tier, with four simultaneous streams, will be $24.99 per month, up $2. The cost of adding an Extra Member to a primary account is increasing from $7.99 to $8.99 per month.
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“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 further improve Netflix,” the company said 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).”
On the earnings call with analysts, co-CEO Greg Peters said, “We believe that our starting price” for Standard With Ads — even after the price increase — “is an incredible entertainment value. And it’s a highly accessible entry point.”
In its last major U.S. price hike, in October 2023 Netflix raised the price of the Basic plan from $9.99 to $11.99 per month in the U.S. and upped the Premium price from $19.99 to $22.99. (In the U.S. and several other markets, it no longer offers the Basic plan, with the “Standard With Ads” tier serving as the entry-level option.) At that time, the cost of the streamer’s ad-supported remained at $6.99 per month in the U.S. and the Standard package stayed at $15.49 per month. The last time Netflix raised the U.S. price of the Standard plan was in January 2022.
In announcing the Q4 earnings and price increases, Netflix raised its 2025 outlook for revenue to be between $43.5 billion and $44.5 billion (up $500 million from its prior forecast) and for operating margin to be 29%, up one percentage point from the prior forecast.
“Netflix reaffirms its leadership position and is absolutely running away in the streaming market,” said Paolo Pescatore, analyst and founder of PP Foresight, commenting on the Q4 earnings. “It is now flexing its muscles by adjusting prices given its far stronger and diversified programming slate compared to rivals.”
Netflix did not raise subscription prices in 2024, but execs said multiple times last year that rate increases were on the table.
On Tuesday, the company said ad-supported plans in Q4 accounted for over 55% of sign-ups in its ads countries and membership on the ads plan grew nearly 30% quarter over quarter. Netflix also Tuesday announced an “Extra Member With Ads” offering in 10 of the 12 countries where it has an ads plan “to give our members additional choice and flexibility.”
“We’re on track to reach sufficient scale for ads members in all of our ads countries in 2025. A top priority in 2025 is to improve our offering for advertisers so that we can substantially grow our advertising revenue,” the company said in its investor letter.