The Standard plan will now cost $17.99 per month in the United States, which is $2.50 more than before.
Netflix is raising its subscription prices in the U.S. and some other countries. This includes the first price increase for its plan with ads.
The company shared the news during its Q4 2024 earnings report on Tuesday. Along with this, Netflix announced a record jump in subscribers, adding 18.9 million new users in just three months.
In the U.S., the Standard plan (without ads) will now cost $17.99 per month, which is $2.50 more than before. This is the first price change for the Standard plan in three years. The plan allows two people to watch in HD at the same time.
Netflix is also increasing prices for its other plans. The ad-supported plan will now cost $7.99 per month, which is $1 more than the previous $6.99. The Premium plan, which allows four people to stream at once, will now cost $24.99 per month, a $2 increase. If someone wants to add an Extra Member to their account, the price is going up from $7.99 to $8.99 per month.
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 U.S., Canada, Portugal and Argentina (which was already factored into the 2025 guidance we provided in October 2024).
the company said in its quarterly letter to investors.
During the earnings call, Netflix’s co-CEO Greg Peters said, “We believe that our starting price” for the Standard With Ads plan, even with the price increase, “is an incredible entertainment value. And it’s a highly accessible entry point.”
Netflix’s last big price increase in the U.S. happened in October 2023. At that time, the Basic plan went up from $9.99 to $11.99 per month, while the Premium plan increased from $19.99 to $22.99. In many markets, including the U.S., Netflix has since removed the Basic plan, replacing it with the “Standard With Ads” tier as the most affordable option. Back then, the ad-supported plan stayed at $6.99 per month, and the Standard plan remained at $15.49. The last time Netflix raised the price of the Standard plan in the U.S. was in January 2022.
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When Netflix announced its Q4 earnings and new price changes, it also updated its 2025 financial expectations. The company now predicts its revenue will be between $43.5 billion and $44.5 billion, which is $500 million more than its earlier estimate. Netflix also expects its operating margin to reach 29%, an increase of 1% from its previous forecast.
Netflix is proving it’s leading the streaming market and pulling ahead of competitors, With its stronger and more varied programming than rivals, it’s confidently raising prices.
said Paolo Pescatore, an analyst and founder of PP Foresight, while discussing the Q4 earnings.
Netflix didn’t increase subscription prices in 2024, but its executives mentioned several times last year that price hikes were being considered.
On Tuesday, the company shared that over 55% of sign-ups in countries with ad-supported plans during Q4 chose the ads plan, and membership for this plan grew by nearly 30% compared to the previous quarter. Netflix also introduced a new “Extra Member With Ads” option in 10 out of the 12 countries offering ad-supported plans, giving members more options and flexibility.
We’re on track to have enough ads members in all our ads countries by 2025. A key focus for 2025 is making our ads offering better for advertisers so we can significantly grow our advertising revenue,
the company explained in its investor letter
Source: Variety