Netflix Hikes Subscription Prices in the U.S., Including First Increase for Ad-Supported Tier
Netflix is raising its subscription prices in the U.S. and other markets, introducing the first price hike for its ad-supported plan. The announcement came alongside its Q4 2024 earnings report, where the company revealed a record-breaking quarterly subscriber increase of 18.9 million.
Under the new U.S. pricing structure, the Standard plan (without ads) will rise by $2.50, increasing from $15.49 to $17.99 per month. This marks the first price adjustment for the Standard tier, which includes two simultaneous HD streams, in three years.
The ad-supported tier will now cost $7.99 per month, up from $6.99, while the Premium plan, offering four simultaneous streams, will increase by $2 to $24.99 per month. Additionally, the cost to add an Extra Member to a primary account will rise from $7.99 to $8.99 per month.
“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,” the company explained in its quarterly letter to investors. Price changes will also impact subscribers in Canada, Portugal, and Argentina, which Netflix noted were already accounted for in its 2025 financial projections.
Co-CEO Greg Peters defended the value of the Standard With Ads tier during the earnings call, stating, “Even after the price increase, it remains an incredible entertainment value and a highly accessible entry point.”
Netflix’s last major U.S. price increase came in October 2023, when the Basic plan jumped from $9.99 to $11.99 per month, and the Premium plan rose from $19.99 to $22.99. At that time, the Standard and ad-supported tiers remained unchanged. The Basic plan has since been phased out in many markets, leaving the Standard With Ads tier as the entry-level option.
Alongside the price adjustments, Netflix raised its 2025 revenue forecast to $43.5 billion–$44.5 billion (a $500 million increase) and boosted its operating margin outlook to 29%.
Analyst Paolo Pescatore, founder of PP Foresight, praised Netflix’s dominance, saying, “Netflix reaffirms its leadership position and is absolutely running away in the streaming market. Its price adjustments reflect its robust and diverse programming compared to competitors.”
The company also highlighted the growing popularity of its ad-supported plans. In Q4, these tiers accounted for over 55% of sign-ups in ad-supported markets, with membership on the ad-supported plan increasing nearly 30% quarter-over-quarter. Netflix has also launched an “Extra Member With Ads” option in select countries to offer users more flexibility.
Looking ahead, Netflix is focused on scaling its ad-supported tiers and improving offerings for advertisers, aiming to significantly expand its advertising revenue in 2025.