Netflix Price Hike: Ad-Supported Plan Increases to $7.99, Premium Plan Jumps to $24.99
Earnings Report Reveals Strong Subscriber Growth and Content Pipeline
Netflix (NFLX) recently implemented price adjustments for its streaming tiers in the US, following a quarter with nearly 20 million new subscribers. The company's ad-supported plan is now priced at $7.99, up from $6.99. The Standard, ad-free tier has increased to $17.99, from $15.49, while the Premium plan has seen a $2 increase to $24.99. Additional subscribers will incur a $8.99 fee, an increase of $1.
Beyond the US, Netflix has also adjusted prices in Canada, Portugal, and Argentina. During the company's earnings call, Co-CEO Ted Sarandos highlighted Netflix's robust content pipeline, expecting numerous movies and TV shows throughout 2025. He emphasized the strength of upcoming projects like "Happy Gilmore 2" and the return of popular series such as "You," "Stranger Things," "Wednesday," and "The Night Agent."
Analysts anticipated the price hike due to Netflix's successful 2024. Geetha Ranganathan, senior analyst at Bloomberg Intelligence, stated that they expected a price increase in the US market for some time.
This is the first price adjustment for Netflix's two-year-old ad tier, which remains one of the most affordable among major streaming platforms despite the $1 increase. The company has previously increased prices for its other tiers. The Standard plan was last updated in January 2022, while the Premium tier has seen two price increases in 2022 and October 2023.
Netflix experienced a remarkable 2024, concluding the year with back-to-back NFL games, the successful "Jake Paul vs. Mike Tyson" boxing match, and the highly anticipated return of "Squid Game." The Jake Paul and Mike Tyson match drew a global audience of over 108 million viewers, becoming the most-streamed sporting event ever. NFL games averaged approximately 30 million viewers, and Netflix reported its most-watched Christmas Day in the US.
Moving forward, Netflix plans to continue investing in sports, with the debut of WWE Raw and potential bids for UFC rights. During the call, Sarandos indicated openness to exploring additional sports content depending on financial viability. He emphasized the company's focus on expanding its programming and the importance of live events.
Despite the price hike, Netflix reported strong user engagement, with members spending approximately two hours per day on the platform. "When you're asking for a price increase, you need to ensure you have the content and engagement to support it," said an executive. "That is precisely what we have going into 2025."