Netflix’s cheapest plan in the US with ads will go from $6.99 to $7.99 per month, while its priciest subscription is nearly $25.
Netflix is making waves once more, but not just for its binge-worthy content. In its latest earnings report, the streaming giant announced another round of price increases, impacting subscribers in the United States, Canada, Portugal, and Argentina. Starting with the next billing cycle, subscribers will see changes across most of Netflix’s plans. Let’s break it all down.
New Pricing Breakdown
Netflix spokesperson MoMo Zhou confirmed to The Verge that the following adjustments are being implemented:
- Ad-Supported Plan: Increasing from $6.99 to $7.99 per month.
- Standard Ad-Free Plan: Jumping from $15.49 to $17.99 per month.
- Premium Plan: Rising from $22.99 to $24.99 per month.
These price hikes mark the first increase for the ad-supported plan since it was introduced in 2022. While Netflix argues the changes will help the company continue to deliver value, the adjustment is likely to leave many subscribers wondering if the extra cost is justified.
Why the Increase?
In a letter to investors, Netflix explained the rationale behind the price hikes: “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 isn’t the first time Netflix has raised its prices. The last adjustment came in October 2023. While the increases may be frustrating to some, Netflix’s strategy is clear: invest heavily in new content and features to stay ahead in the competitive streaming market.
A Record-Breaking Quarter
Despite the price increases, Netflix’s subscriber base is growing at an unprecedented rate. The company reported adding 19 million new subscribers in the last quarter alone — the highest single-quarter growth in its history. This surge brings Netflix’s global subscriber count to a staggering 300 million.
Interestingly, this marks the final time Netflix will disclose its quarterly subscriber gains. Starting in 2025, the company will only announce “major subscriber milestones” moving forward.
Growth Potential Remains High
Even with its impressive numbers, Netflix executives believe there’s significant room for growth. According to their investor letter, Netflix accounts for less than 10% of TV viewing in the markets where it operates. This suggests that as streaming continues to dominate traditional television, Netflix sees plenty of opportunities to capture a larger share of viewers.
Introducing the ‘Extra Member with Ads’ Plan
In addition to the price hikes, Netflix is rolling out a new plan aimed at households looking to share subscriptions. The “Extra Member with Ads” option will allow subscribers on the ad-supported plan to add someone outside their household for an additional $7.99 per month. This mirrors the existing feature available for ad-free plans, which currently costs the same amount.
Content That Keeps Subscribers Hooked
Netflix’s content strategy remains a key driver of its success. The platform ended 2024 with an impressive lineup, including highly anticipated new seasons of Squid Game and Arcane, the League of Legends spinoff. These blockbuster titles continue to draw viewers and keep Netflix ahead in the streaming wars.
Beyond scripted series, Netflix has also been ramping up its live content offerings. In recent weeks, the platform transitioned from hosting “sports-adjacent” events — such as a celebrity golf tournament featuring PGA players and Formula One drivers — to airing marquee live events like NFL games with halftime performances by global superstars Beyoncé and Mariah Carey.
However, don’t expect Netflix to dive headfirst into regular-season sports just yet. The company’s live strategy prioritizes “can’t-miss, special event programming” over acquiring rights to large-scale sports packages. For example, Netflix’s first-ever live boxing match between Mike Tyson and Jake Paul shattered records, while its WWE debut with Monday Night Raw secured 4.9 million views.
What’s Next for Netflix?
With operating income surpassing $10 billion for the first time and an expanding global footprint, Netflix is showing no signs of slowing down. The company’s approach to pricing and programming reflects its ambition to remain the dominant force in streaming.
While the price increases may sting for some, Netflix’s continued investment in top-tier content, innovative features, and unique live experiences suggests it’s betting big on the long-term loyalty of its subscribers.
Whether you’re sticking with Netflix or exploring other options, one thing is clear: the streaming giant is doubling down on its mission to keep audiences entertained, one binge-worthy moment at a time.
