The majority of Netflix’s plans in the US are seeing price increases.
On Tuesday, the streaming behemoth said that its basic plan, which currently costs $15.49 per month without advertisements, will now cost $17.99. Its less expensive, ad-supported plan, which was just launched to draw in more users, will now cost $7.99 a month instead of $6.99.
Additionally, the price of Netflix’s premium plan will go up from $22.99 to $24.99 per month.
The business said it will also boost pricing in Argentina, Portugal, and Canada after releasing its fourth-quarter profits on Tuesday.
In recent years, consumers have had to deal with multiple price increases from big streaming services including Netflix and its rivals, Warner Bros. Discovery sMax and Disney Sapps. In an effort to become profitable, streamers have increasingly resorted to charging more and offering ad-supported subscriptions.
During Tuesday’s investor call, Netflix co-CEO Ted Sarandos stated that if you’re going to want a price hike, you’d better have the products and engagement to support it. He also mentioned anticipated 2025 series and film releases.
Co-CEO Greg Peters stated on Tuesday’s call that the latest price hikes in global markets occurred without a hitch.
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In 2022, Netflix raised the price of its ad-free basic plan, and in 2023, it raised the price of its premium plan. Meanwhile, the business dropped its most affordable basic ad-free offering in 2023. Later that year, Netflix raised the price of the plan, although it is no longer accessible to new users.
In response to declining member growth at the time, Netflix launched a less expensive, ad-supported plan in November 2022 and quickly abandoned the basic ad-free tier. According to Netflix’s ad plans, it had 70 million monthly active users worldwide in November. Netflix has changed the cost of the ad-supported plan for the first time.
In an effort to encourage more clients to pay for its services, the business has also been cracking down on password sharing.
As part of that update, Netflix users now have the ability to add more people to their accounts. On Tuesday, the streamer announced that the price of additional subscribers on regular subscriptions without ads would increase from $7.99 to $8.99 per month. The cost of the additional members on ad-supported plans won’t change.
It seems that the crackdown is having an effect: In order to reach 300 million customers, Netflix added a record 19 million premium subscriptions in the fourth quarter, the company announced on Tuesday.