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Netflix announces price increases for US subscribers

Netflix has rolled out price increases across all its subscription tiers in the United States as it expands into new content areas, including video podcasts and live sports.

Under the revised pricing, the ad-supported plan now costs $8.99 per month, up from $7.99. The standard plan has risen by $2 to $19.99 monthly, while the premium tier is now priced at $26.99, compared to its previous $24.99 rate. The cost of adding an extra member has also gone up, reaching $7.99 for ad-supported plans and $9.99 for ad-free options.

The streaming platform, which boasts a global subscriber base exceeding 325 million, discontinued its lowest-priced ad-free “basic” plan in 2023. This move left customers choosing between higher-priced premium and standard packages, as well as a standard option that includes advertisements.

Analysts at TD Cowen estimate that the latest pricing adjustments could lift the company’s average revenue per user in the U.S. and Canada by around 6% year-on-year in 2026. The company had previously increased its subscription fees earlier last year.

Financially, Netflix reported revenue of $12.1 billion for the October to December quarter, slightly surpassing market expectations. Earlier this year, the company also stepped back from bidding on streaming and studio assets owned by Warner Bros., a move that helped clear the path for Paramount Skydance to proceed with a major $110 billion acquisition of the historic Hollywood studio.

Serendib News
Serendib News
Serendib News is a renowned multicultural web portal with a 17-year commitment to providing free, diverse, and multilingual print newspapers, featuring over 1000 published stories that cater to multicultural communities.

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