Netflix Hikes Prices for Most of Its US Plans
Netflix has announced a price increase for most of its U.S. plans, with the standard plan without commercials rising from $15.49 a month to $17.99, and the cheaper, ad-supported plan increasing from $6.99 to $7.99. The monthly cost of Netflix’s premium plan will also rise from $22.99 to $24.99.
In addition to the price hikes, Netflix will raise prices in Canada, Portugal, and Argentina. The company is increasing prices in an effort to reach profitability and to attract more subscribers to its ad-supported plans.
The ad-supported plan has been successful in attracting new customers, with the company reporting 70 million global monthly active users on its ad plans in November. However, the basic ad-free tier is no longer available to new customers, as the company discontinued the plan in 2023 after introducing the ad-supported option in November 2022.
To further crackdown on password sharing, Netflix is introducing a new pricing structure for “extra members” on its accounts. The cost of extra members on standard plans without commercials will rise from $7.99 per month to $8.99. Despite the price increase, Netflix is reporting a record 19 million paid memberships in the fourth quarter, surpassing 300 million subscribers.
Co-CEO Ted Sarandos said that Netflix is “confident” that the price increases will not lead to a subscriber decline, and that the company has “engagement to back it up” with new content and series expected to be released in 2025. Co-CEO Greg Peters noted that the recent price increases in international markets have been “smooth,” suggesting that the company is willing to take further steps to optimize its pricing structure.