New Delhi: Netflix, a popular streaming service, has announced a price hike for most of its subscriptions in several countries. This includes the US, Canada, Portugal and Argentina. As part of the change, the cost of the ad-supported tier will rise from 6.99 dollar to 7.99 dollar per month. Meanwhile, the standard ad-free plan will jump from 15.49 dollars to 17.99 dollars per month. This move reflects Netflix’s ongoing efforts to adjust its pricing strategy, as reported by The Verge, citing a statement from the company’s spokesperson, MoMo Zhou.
In addition to the changes for the ad-supported and standard plans, Netflix is also increasing the price of its premium tier. The cost will go up from 22.99 dollars to 24.99 dollars per month. These new prices will take effect during subscribers’ next billing cycle.
Why Is Netflix Raising Its Prices?
The report quoted Netflix’s letter to investors, which stated, “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.” This price hike follows the last increase in October 2023 and marks the first time the streaming service has raised the price of its ad-supported plan, which was introduced in 2022.
This decision comes after a strong year for Netflix which added nearly 19 million new subscribers over the holiday season, This brings its global total to more than 300 million by the end of 2024. The company also saw its operating income surpass $10 billion for the first time, as per the report. In addition to the price increase, Netflix revealed plans to launch a new “Extra Member with Ads” option, allowing subscribers on the ad-supported plan to add someone outside their household to their account.
The Power of Netflix Originals
Netflix’s original content continues to have a major impact, with global hits like Squid Game—which returned for its second season—remaining the platform’s most-watched series of all time. Popular shows like Stranger Things and Wednesday also help strengthen Netflix’s cultural influence.
The company is expanding its content lineup through partnerships and sports programming. US subscribers will soon have access to WWE content, as well as NFL games on Christmas Day. Additionally, Netflix has begun bundling services with former competitors like Peacock and Apple TV to offer more options to its viewers.