On January 22, 2025, Netflix announced a price increase for its subscription plans in the U.S. and other markets, marking the first hike on its ad-supported tier. The company revealed these changes alongside its Q4 2024 earnings report, which highlighted a record gain of 18.9 million subscribers during the period.
- Netflix raises subscription prices in U.S.
- Significant subscriber growth reported in Q4 2024.
- Standard plan increases by $2.50 monthly.
- Ad-supported tier price rises to $7.99.
- Netflix forecasts higher revenue for 2025.
- Ad-supported plans account for 55% of sign-ups.
Netflix’s recent price adjustments come as part of its strategy to enhance programming and maintain its competitive edge in the streaming market. The Standard plan without ads will see an increase of $2.50, bringing the monthly fee to $17.99. Meanwhile, the ad-supported tier will rise from $6.99 to $7.99, marking its first price hike since its launch. The Premium plan, which allows for four simultaneous streams, will now cost $24.99, an increase of $2.
In addition to these changes, the cost of adding an Extra Member to a primary account will increase from $7.99 to $8.99. Netflix stated that these adjustments are necessary to continue investing in content and improving the platform for users. The company has noted a significant uptake in its ad-supported plans, accounting for over 55% of new sign-ups in markets where ads are available, with membership growth nearly 30% quarter over quarter.
Netflix’s price hikes follow a previous increase in October 2023, when the Basic plan rose from $9.99 to $11.99, and the Premium plan increased from $19.99 to $22.99. The company has not raised subscription prices in 2024 but indicated that rate increases were likely. Netflix’s Q4 earnings report also projected an increase in revenue for 2025, estimating between $43.5 billion and $44.5 billion, reflecting a $500 million rise from prior forecasts.
In summary, Netflix’s decision to increase subscription prices, including the first hike on its ad-supported tier, is aimed at bolstering its content offerings and maintaining its leadership in the streaming industry. The adjustments reflect the company’s ongoing commitment to providing value to its growing subscriber base.
