Netflix revealed substantial price hikes across its subscription plans in the United States and several other markets, marking the first-ever increase for its ad-supported tier since its launch in 2022.
The streaming giant announced these changes alongside its fourth-quarter earnings report for 2024, which showcased record-breaking subscriber growth of 18.9 million new members.
Under the new pricing structure in the U.S., subscribers will see the following changes:
- Standard plan (without ads): Increases by $2.50 to $17.99 monthly
- Ad-supported tier: Rises by $1 to $7.99 monthly
- Premium tier: Jumps by $2 to $24.99 monthly
- Extra Member feature: Increases by $1 to $8.99 monthly
The company justified these price adjustments in its investor letter, citing continued investments in programming and enhanced value delivery to members. The changes will affect subscribers in the U.S., Canada, Portugal, and Argentina during their next billing cycle.
Netflix's co-CEO Greg Peters defended the price increase for the ad-supported plan, stating it remains "an incredible entertainment value" and maintains its position as an accessible entry point for new subscribers.
The streaming service has shown remarkable growth, reaching 300 million global subscribers. The ad-supported tier has gained particular traction, accounting for over 55% of new sign-ups in markets where it's available, with membership growing nearly 30% quarter over quarter.
In response to these developments, Netflix has also introduced an "Extra Member With Ads" option in select markets, providing additional flexibility for subscribers who wish to share their accounts with users outside their households.
The price adjustments come as Netflix continues to expand its content offerings, including successful releases of new seasons of popular shows like Squid Game and Arcane, while also venturing into live programming with special events and sports-adjacent content.