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Netflix Raises U.S. Subscription Prices Again: Ad-Supported Tier Now $7.99, Standard $17.99

Netflix has announced new price hikes for its subscription plans in the U.S. and select other territories, following a record-breaking surge in subscribers. The company’s ad-supported plan will now cost $7.99 a month, up from its original $6.99 launch price in 2022. Meanwhile, the Standard plan is increasing from $15.49 to $17.99, and the Premium plan goes up $2, settling at $24.99 per month.

In a letter to shareholders, Netflix explained that periodic price adjustments help fund its extensive content library and maintain the streaming quality its users expect. The company said, “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.”

Netflix’s ad-supported tier may feel the most significant impact from this increase—especially since it accounted for a notable 55% of new sign-ups in the last quarter. Still, the streamer seems confident that most subscribers will stick around despite the bump in monthly costs, based on its track record of retaining users in past rate hikes.

The decision to raise prices arrives at a time when Netflix is enjoying a historic streak of subscriber growth. The company reported a massive 19 million new subscribers added in the fourth quarter of 2024, a notable jump even by Netflix’s high standards. Shows like Squid Game, along with a steady flow of diverse original programming, have continued to draw viewers worldwide.

For those sharing passwords, there’s no change to the current $6.99 fee to add another user under the company’s paid password-sharing plan. Netflix maintains that this approach allows it to recoup revenue without completely barring the practice of account sharing.

While any price hike can spark concern among budget-conscious viewers, analysts have long pointed out that raising rates is one of the most straightforward ways for Netflix to boost revenue. Historically, price increases have led to some subscriber churn, but many users eventually return or stick around, attracted by Netflix’s global hits and wide-ranging catalog.

With this latest adjustment, Netflix is once again testing consumer willingness to pay a premium for ad-free binging—or accept commercials at a slightly more affordable rate. How viewers respond over the coming months will likely inform future pricing strategies, not just for Netflix but potentially for the wider streaming industry.

Stay tuned to Trevor Decker News for the latest developments in streaming, television, and entertainment.

Trevor Decker
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Disclaimer: This content is not sponsored. Trevor Decker News provides independent entertainment coverage.

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