Netflix Raising Prices On Subscription Plans In U.S.; Ad Tier Will Now Cost $7.99 A Month

Dade Hayes and Jill Goldsmith

Tue, 21 Jan 2025, 4:35 pm 2 min read

Leveraging momentum from its recent surge in subscribers, Netflix is raising prices on subscription plans in the U.S. and other territories.

The company’s low-cost tier with advertising is going to $7.99 a month in the U.S., up from the $6.99 level where it started in 2022. The Standard plan, which is the most popular, will now be $17.99, up from $15.49. The top-level Premium plan is rising $2 to $24.99. There will be no change to the $6.99 charge to add another subscriber to the ad tier as part of the company’s paid password sharing plan.

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“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 wrote in its quarterly letter to shareholders. “To that end, we are adjusting prices today across most plans in the US, Canada, Portugal and Argentina (which was already factored into the 2025 guidance we provided in October 2024).”

The move comes as the company reported a record 19 million subscriber additions in the fourth quarter ended December 31.

While consumers are leery of any more inflation, especially in the price-hike-happy streaming business, the financial world has long seen significant opportunity for the company to boost its profit margins by raising prices. Typically, the company sees some near-term cancellations after it phases in an increase, but the general pattern is that most stay in the fold, and any returning or new sign-ups are worth more given the higher price point.

The jump for the advertising tier is perhaps the most significant move, given that it accounted for 55% of all sign-ups during the quarter. Netflix last fall said its ad tier had surpassed 70 million monthly active users. The company does not break out the number of subscribers on any individual tier.

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