Netflix is increasing the cost of several streaming plans in the U.S., including its standard and ad-supported tiers. The announcement, made on Tuesday, revealed that the standard plan without ads will rise from $15.49 per month to $17.99, while the ad-supported plan will increase from $6.99 to $7.99.
The premium plan, which offers additional features, will also see a price hike, jumping from $22.99 to $24.99 per month. In addition to changes in the U.S., Netflix plans to raise prices in Canada, Portugal, and Argentina.
A Growing Trend Among Streamers
This latest move reflects a broader trend across major streaming services, including Disney+ and Warner Bros. Discovery’s Max, where subscription costs have steadily risen. Streaming platforms have been relying on higher prices and ad-supported tiers to boost profitability.
Netflix co-CEO Ted Sarandos addressed the increase during an investor call, emphasizing the need to deliver value to subscribers. “When you’re going to ask for a price increase, you better make sure you have the goods and engagement to back it up,” Sarandos said, referencing the company’s upcoming slate of movies and series for 2025.
Co-CEO Greg Peters also noted that previous price adjustments in international markets had been implemented smoothly.
A History of Pricing Changes
Netflix last raised the cost of its standard plan without ads in 2022 and increased the price of its premium plan in 2023. That same year, the company eliminated its cheapest ad-free option for new subscribers, later increasing the price for existing users.
The ad-supported plan, introduced in late 2022 to address slowing subscriber growth, has grown in popularity, reaching 70 million global monthly active users as of November 2024. This is the first price adjustment for the ad-supported tier since its launch.
Cracking Down on Password Sharing
In addition to pricing changes, Netflix has been ramping up efforts to reduce password sharing. Subscribers now have the option to add “extra members” to their accounts. For standard plans without ads, the cost of adding extra members will rise from $7.99 to $8.99 per month. However, prices for extra members on ad-supported plans will remain unchanged.
Subscriber Growth
The strategy appears to be yielding results. Netflix reported a record-breaking 19 million new paid memberships in the fourth quarter of 2024, pushing its total subscriber base past 300 million.
As Netflix continues to adjust pricing and crack down on shared accounts, the company remains focused on maintaining its leadership in the competitive streaming market.
Luyanda is a digital marketing & SEO professional. She is a part of the Minority Business Review digital marketing team. She is a Boston Media House Graduate who obtained a Diploma in Media Practice majoring in Digital Marketing.