The word “Netflix” shines brightly during the presentation of the new season (3) of the Netflix series “Bridgerton” in Flora.
Rolf Vennenbernd | Alliance in pictures | Getty Images
Netflix increases the price of most of its American plans.
The streaming giant announced Tuesday that its standard ad-free plan will increase from $15.49 per month to $17.99. Its cheaper, ad-supported plan, which was introduced more recently to attract more subscribers, will increase from $6.99 per month to $7.99.
Additionally, the monthly cost of Netflix’s premium plan will increase from $22.99 to $24.99.
The company, which reported fourth-quarter results on Tuesday, said it would also raise prices in Canada, Portugal and Argentina.
Consumers have faced numerous price increases in recent years on major streaming services, including Netflix and its competitors, including Disney applications and Warner Bros. Discovery Max. Streamers are increasingly turning to higher prices and ad-supported plans as they seek to achieve profitability.
“When you ask for a price increase, you better make sure you have the assets and the commitment to support it,” Netflix co-CEO Ted Sarandos said on Tuesday’s investor call , highlighting upcoming series and films. 2025.
On Tuesday’s call, co-CEO Greg Peters said recent price increases in international markets have been “smooth.”
Netflix last increased the cost of its standard ad-free plan in 2022, while its premium plan last saw an increase in 2023. Meanwhile, in 2023, the company dropped its basic ad-free option. cheapest advertising. Although the plan was no longer available to new customers, Netflix increased the cost later that year.
Netflix had dropped the ad-free base tier shortly after introducing its cheaper ad-supported plan in November 2022 in response to slowing subscriber growth at the time. In November, Netflix said it had reached 70 million monthly active users worldwide with its advertising plans. This is the first time Netflix has changed the price of the ad-supported plan.
The company has also implemented crackdowns on password sharing in an effort to get more customers to pay for its service.
As part of this change, Netflix gave subscribers the option to add “additional members” to their accounts. The streamer said Tuesday that the cost of additional members on standard ad-free plans will increase from $7.99 per month to $8.99. Additional members on ad-supported plans will not see a price change.
The crackdown appears to be paying off: Netflix announced Tuesday that it added a record 19 million paid subscriptions during the fourth quarter, surpassing 300 million subscribers.
