Netflix has officially announced an increase in subscription prices for its US customers, effective immediately. The streaming giant is raising prices by $1 to $2.50 per month, depending on the subscription plan.
This price hike follows a strong performance in the company's holiday quarter, where it added nearly 19 million new subscribers, bringing its total user base to over 300 million.
Netflix's New Pricing Plans Include $1 to $2.50 Increases Across Subscription Tiers
The price adjustments involve a rise in the standard plan with ads to $7.99 per month, an increase from the previous price of $6.99.
According to CBS News, the regular standard subscription will now cost $17.99, a $2.50 increase from $15.49, while the premium plan will go up to $24.99, compared to the previous $22.99.
Netflix has also increased the cost of adding an extra member, from $7.99 to $8.99, while the price for additional members on the ad-supported plan remains unchanged at $6.99.
The price hikes come as Netflix makes significant changes to its offerings, particularly with its growing move into live programming and more advertising.
As part of its strategy, the company aims to boost its advertising business, which has gained popularity in countries where it's offered, accounting for more than half of new sign-ups.
Read Also: FTC Sues PepsiCo for Alleged Price Discrimination Favoring Walmart Over Smaller Retailers
Netflix to Add WWE, NFL, and Gaming Content as it Raises Subscription Prices
Netflix also plans to expand into live programming and gaming, with upcoming additions like WWE and NFL programming.
In a statement, Netflix explained, "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."
This price increase follows a pattern of growth for Netflix, which has enjoyed a steady rise in subscribers, especially after launching its ad-supported plan in late 2023 and cracking down on password sharing.
The company also reported a profit of $1.87 billion for the fourth quarter of 2024, with revenue reaching $10.25 billion, LiveMint said.
Netflix is forecasting a revenue range of $43.5-44.5 billion for 2025 and continues to focus on expanding its content and enhancing its service to maintain its leadership in the competitive streaming market.
