Netflix has announced a revision in its subscription pricing, effective immediately. This marks the latest adjustment in the streaming service’s strategy to enhance profitability.
In a letter to shareholders, Netflix said, “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. To that end, we are adjusting prices today across most plans in the US, Canada, Portugal and Argentina (which was already factored into the 2025 guidance we provided in October 2024).”
As for the upcoming changes in the U.S., the lowest-cost tier, Standard with ads, will see an increase from $6.99 to $7.99 per month. This plan launched in 2022, aiming to provide a more affordable option for budget-conscious viewers while increasing revenue through advertisements. The Standard plan, which does not feature ads, will rise from $15.49 to $17.99 per month. The Premium plan, Netflix’s top-tier option, will increase from $22.99 to $24.99 per month.
In addition, Netflix is rolling out a new extra member option for those with the Standard with ads plan at $6.99 per month; this feature was previously only available for ad-free plans. Those with an extra member slot on an ad-free plan will see their monthly cost go up by a dollar, from $7.99 to $8.99 per month.
Netflix launched extra member slots to allow users to share their subscription with those living in another household. This feature was primarily designed to combat account sharing among users living in different households who were not paying their own subscriptions.
These price hikes follow Netflix’s announcement of adding 19 million new subscribers in the final quarter of 2024, setting a record for the highest single-quarter growth in the company’s history. This surge brought the total global subscriber count to 302 million. Additionally, Netflix reported a 16% increase in revenue, exceeding $10 billion for the first time ever, with operating income rising to $2.3 billion, reflecting a 52% on-year increase.
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