Netflix has unveiled another round of subscription price increases across the United States and select international markets—marking the first time the ad-supported plan has received a price boost. The announcement came alongside the company’s Q4 2024 earnings report, during which Netflix also celebrated its largest quarterly subscriber growth ever, adding 18.9 million new users.
In the U.S., the Standard plan without ads will now cost $17.99 per month, up by $2.50 from the previous rate of $15.49. This is the first increase for the Standard tier in three years, and it continues to offer two simultaneous HD streams. Additionally, the ad-supported plan will see its price rise by $1, moving from $6.99 to $7.99 per month. The Premium plan, which provides four simultaneous streams, is also getting a $2 bump, bringing its monthly fee to $24.99. Furthermore, the cost to add an Extra Member to a primary account is set to increase from $7.99 to $8.99 per month.
“As we continue to invest in programming and enhance the value for our members, we’ll occasionally ask them to pay a bit more so we can reinvest in further improvements,” Netflix stated in its quarterly letter to investors. “That’s why we’re adjusting prices today across most plans in the U.S., Canada, Portugal, and Argentina—a change already reflected in our 2025 guidance from October 2024.”
During the earnings call, co-CEO Greg Peters emphasized that even after the increase, the starting price for the Standard With Ads tier remains an excellent value and a very accessible entry point for new subscribers.
For context, Netflix’s last major U.S. price adjustments occurred in October 2023, when the Basic plan rose from $9.99 to $11.99 per month and the Premium plan increased from $19.99 to $22.99. (It’s worth noting that in the U.S. and several other regions, the Basic plan is no longer offered, with the “Standard With Ads” option now serving as the entry-level tier.) Back then, the ad-supported plan remained at $6.99 per month, and the Standard package was $15.49 per month. Prior to that, the Standard plan hadn’t seen a price increase since January 2022.
In conjunction with these pricing changes, Netflix raised its 2025 revenue outlook to a range of $43.5 billion to $44.5 billion—up by $500 million from its previous forecast—and boosted its projected operating margin to 29%, an increase of one percentage point.
“Netflix reaffirms its leadership position and is absolutely dominating the streaming market,” said Paolo Pescatore, analyst and founder of PP Foresight, in response to the Q4 earnings report. “They’re flexing their muscles by adjusting prices, backed by a far stronger and more diversified programming slate than their competitors.”
While there were no price hikes in 2024, Netflix executives had repeatedly hinted last year that increases were on the horizon. On Tuesday, the company noted that ad-supported plans accounted for over 55% of new sign-ups in designated markets, with membership growing nearly 30% quarter over quarter. Additionally, Netflix announced a new “Extra Member With Ads” option available in 10 of the 12 countries offering the ad-supported plan, providing subscribers with extra flexibility and choice.
“We’re on track to achieve sufficient scale for ad-supported memberships in all our markets by 2025. A top priority for next year is to enhance our advertising offering so we can substantially grow our ad revenue,” Netflix added in its investor letter.
Stay tuned for more updates as Netflix continues to evolve its pricing strategy and expand its global footprint in the streaming industry.
