Netflix has raised its streaming prices in the US, with the ad-supported plan increasing to $7.99, while its Standard, ad-free tier will now be $17.99 and Premium plan will increase by $2 to $24.99. The company has also adjusted prices outside of the US.
The price hike comes after a strong 2024 for Netflix, which reported nearly 20 million new subscribers in the fourth quarter. Co-CEO Ted Sarandos touted the company’s strong content pipeline, including upcoming projects like “Happy Gilmore 2” and the return of popular shows like “Stranger Things,” “Wednesday,” and “The Night Agent.”
Investors viewed the price increase as long overdue, given the company’s impressive performance in 2024. The price hike marks the first time Netflix has raised its ad tier since its introduction two years ago.
Despite the price increase, Netflix remains competitive with other streaming services. The company will continue to focus on sports content, including the recent debut of WWE Raw and rumored plans to bid on UFC rights. Engagement on the platform remains strong, with each member spending about two hours per day.
Sarandos emphasized that the company needs to have a strong content pipeline to justify price increases. He noted that 2025 is shaping up to be an exciting year for Netflix, with more movies and TV shows expected.
Source: https://finance.yahoo.com/news/netflix-hikes-subscription-prices-as-content-has-never-been-better-thanks-to-sports-live-events-230402052.html