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Sunday, February 16, 2025

Netflix Announces Price Hikes Across All Subscription Tiers in the U.S. Amid Record Subscriber Growth

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Netflix has announced a price increase across all its subscription plans in the United States, marking the first-ever rise for its ad-supported option.

The most significant hike is for the standard, ad-free plan, which will now cost $17.99 a month, up by $2.50. The ad-supported plan will see a $1 increase, raising the monthly fee to $7.99, while the premium plan will rise by $2, bringing the total to $24.99 per month. New subscribers will see the price changes immediately, while existing customers will experience the adjustments in their next billing cycle.

The streaming giant justified the price hikes by emphasizing its ongoing investment in content and its commitment to providing greater value to subscribers. “To continue enhancing our programming and delivering better content, we occasionally need to adjust our prices to ensure we can keep improving Netflix,” the company stated in a letter to investors.

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This price adjustment comes alongside the announcement of Netflix’s largest quarterly subscriber growth ever, with 18.9 million new sign-ups in Q4 2024, pushing the total number of global subscribers to 300 million. Greg Peters, Netflix’s co-CEO, supported the price increase, particularly for the ad-supported plan, claiming, “Even after the price increase, we believe our entry-level price is still an unbeatable value for entertainment.”

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This price change marks Netflix’s first increase since October 2023, when the company raised the cost of its basic and premium plans while leaving the prices for the standard and ad-supported tiers unchanged. Netflix also revealed that more than 55% of new subscribers in regions offering ads chose the ad-supported plan in Q4.

The increase will also apply to subscribers in Canada, Portugal, and Argentina. Netflix has revised its revenue forecast for 2025, expecting to earn between $43.5 billion and $44.5 billion, a $500 million increase from its previous estimate, along with a projected operating margin of 29%.

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