Netflix Inc. is raising prices again, though for some viewers, it’s been a while since the last increase.
The company announced on Tuesday, alongside its earnings, that it will be “adjusting prices” on most plans in the U.S. and Canada, with monthly hikes ranging from $1 to $2.50, depending on the plan, according to a spokesperson.
- The ad-supported tier will cost $7.99 a month, up from $6.99 previously.
- The standard plan will cost $17.99 a month, up from $15.49 previously.
- The premium plan will cost $24.99 a month, up from $22.99 previously.
The cost for an additional member on an existing account will rise by $1, reaching $8.99 per month.
Streaming services have seen several price hikes in the past year, including Warner Bros. Discovery’s Max, Paramount+’s offerings, and Disney’s platforms like Disney+ and Hulu. Live services, such as YouTube TV, have also increased in price.
Until today, Netflix had held off on raising the price of its standard tier for years, with the last increase in early 2022. The premium plan saw a price hike more recently, in late 2023.
This marks the first price increase for Netflix’s ad-supported service, which had been priced at $6.99 per month since its launch in late 2022.
In early 2023, Netflix made a major change by cracking down on account sharing, requiring account holders to pay extra for additional users or have those users purchase their own accounts.
At that time, Netflix had just launched its ad-supported tier, which became a popular choice for password sharers who didn’t want to pay for the standard service. The recent price hikes could lead some users to “trade down” to the ad-supported plan.
During Netflix’s earnings call on Tuesday, Co-CEO Greg Peters called the ad-supported tier “an incredible entertainment value,” noting that $7.99 is a “highly accessible entry point.” In the latest quarter, 55% of new signups were for the ad-supported plan in available regions.
The new $17.99 price for the standard tier compares to $18.99 for Hulu’s ad-free version and $16.99 for Max’s ad-free version.