Netflix Raising Prices in U.S. Again, Including First Hike on Ad-Supported Tier

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As a devoted Netflix fan, I’m sharing the news that we’ll be seeing a price bump for our subscriptions, not just in the U.S., but also in other global markets. This includes an initial price increase for their ad-supported plan.

On Tuesday, during the announcement of its Q4 2024 financial results, the streamer disclosed the rise in prices, alongside unveiling an unprecedented surge of 18.9 million new subscribers – the highest quarterly growth ever recorded by the platform.

As a dedicated movie enthusiast, I’ve got some news to share about my beloved Netflix. In the United States, they’re bumping up the price of their ad-free Standard plan by $2.50, taking it from $15.49 to $17.99 each month. This change comes three years after Netflix last raised the price for this tier that offers two high-definition streams at once.

Furthermore, Netflix plans to raise the price for its ad-supported plan to $7.99 monthly, which is $1 more than the current $6.99. The premium tier, allowing four concurrent streams, will now cost $24.99 monthly, an increase of $2 compared to its previous price. Additionally, the cost to add an extra member to a primary account will rise from $7.99 to $8.99 per month.

In our efforts to enhance the quality of our programming and offer greater benefits to our subscribers, we may occasionally need to increase membership fees slightly. This is so we can keep making Netflix even better for you. Consequently, starting today, we are modifying prices on most plans in the U.S., Canada, Portugal, and Argentina (a change that was accounted for in the 2025 projection provided last October).

Back in October 2023, I, as a devoted movie enthusiast, noticed a change in my Netflix subscription costs. The Basic plan, which I had been using for $9.99 per month, jumped to $11.99, while the Premium plan, previously set at $19.99, moved up to $22.99. Interestingly, in the U.S. and other markets, Netflix discontinued the Basic plan and introduced the “Standard With Ads” as the new entry-level option. Fortunately, the cost of the ad-supported streaming remained unchanged at $6.99 per month, and the Standard package stayed put at $15.49 per month. It’s worth mentioning that this was the first price hike for the U.S. Standard plan since January 2022.

In their Q4 earnings announcement, Netflix revised its projected revenue range for 2025, now expecting it to be between $43.5 billion and $44.5 billion – an increase of $500 million compared to its previous projection. Additionally, they raised their anticipated operating margin for 2025 by one percentage point, now aiming for 29%.

According to analyst and founder of PP Foresight, Paolo Pescatore, Netflix continues to dominate the streaming market, pulling ahead even further. He notes that this dominance allows Netflix to raise its prices due to its more extensive and varied content offering in comparison to competitors.

In 2024, Netflix chose not to increase its subscription fees, though executives had mentioned several times in the previous year that potential price hikes might be under consideration.

On Tuesdays announcement, the company revealed that in Q4, ad-supported plans made up more than half (55%) of new subscriptions in its advertising nations. Moreover, the number of memberships on this ad plan increased by almost 30% compared to the previous quarter. Additionally, Netflix unveiled a new option called “Extra Member With Ads” in ten out of the twelve countries where they offer ads, aiming to provide members with more choices and flexibility.

The company stated in its investor correspondence that by the year 2025, they expect to have expanded their ad platform to a significant level across all countries where they operate ads. In 2025, a major focus will be on enhancing our services for advertisers with the goal of significantly increasing our advertising income.

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2025-01-22 00:46