Capitalizing on momentum from its recent subscriber surge, Netflix is raising prices for subscription plans in the United States and other territories.
The company’s low-cost tier with advertising will be $7.99 per month in the United States, up from $6.99 in early 2022. The Standard plan, which is the most popular, will now cost $17. $99, down from $15.49. The higher-tier Premium plan increases by $2 to $24.99. There will be no change to the $6.99 fee to add another ad-tier subscriber under the company’s paid password sharing plan.
“As we continue to invest in programming and deliver more value to our members, we
“Are we asking our members to pay a little more so we can reinvest to make Netflix even better,” the company wrote in its quarterly letter to shareholders. “To this end, today we are adjusting the prices of most plans in the United States, Canada, Portugal and Argentina (which was already taken into account in the 2025 forecasts we provided in October 2024).”
The move comes as the company announced a record 19 million subscribers in the fourth quarter ended December 31.
While consumers are wary of further inflation, particularly in the streaming sector, the financial world has long seen a significant opportunity for the company to increase profit margins by raising prices. Typically, the company sees short-term cancellations after a gradual increase, but the general trend is that most stay in the fold, and any returns or new listings are worth more given the higher price.
The increased level of advertising is perhaps the most significant development, given that it represents 55% of all registrations during the quarter. Netflix said last fall that its advertising level had surpassed 70 million monthly active users. The company does not break down the number of subscribers at each individual tier.
