Netflix is raising the cost of most of its U.S. subscription plans, marking another price hike as the company continues to boost revenue and expand its ad-supported model. The standard plan without ads will now cost $17.99 per month, up from $15.49, while the premium plan will increase from $22.99 to $24.99. The cheaper, ad-supported tier will also rise from $6.99 to $7.99 per month.
Alongside the U.S., Netflix will implement similar price increases in Canada, Portugal, and Argentina. The company has been steadily adjusting its pricing strategy, following the industry trend of higher subscription fees and advertising-based revenue models. Other major streaming services, including Disney+ and Max, have also introduced price hikes in recent years as they shift toward profitability.
Netflix co-CEO Ted Sarandos emphasized that the price increase comes with a promise of strong content, pointing to a slate of new series and films set to release in 2025. Co-CEO Greg Peters noted that previous international price hikes were implemented smoothly, suggesting that consumers have largely accepted the changes.
This marks Netflix’s first increase to its ad-supported tier since it was introduced in November 2022 as a response to slowing subscriber growth. The company recently announced that its ad plans now have 70 million global monthly active users, signaling a shift toward advertising-based streaming options.
In addition to price increases, Netflix has been enforcing stricter password-sharing policies to drive more paying subscribers. The platform now allows users to add “extra members” to their standard plans without ads, though this option will now cost $8.99 per month, up from $7.99. Extra members on ad-supported plans will not be affected by the price change.
Despite these adjustments, Netflix’s strategy appears to be paying off. The company reported a record 19 million new paid memberships in the fourth quarter, bringing its total subscriber base to over 300 million.
As streaming services continue to balance profitability and subscriber growth, Netflix remains at the forefront, adapting its pricing and business model to meet evolving industry demands.
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