Netflix (NFLX) raised the prices of its streaming tiers in the US on Tuesday after the company reported nearly 20 million new subscribers in the fourth quarter.
The company is raising the cost of its ad-supported plan to $7.99 from the prior $6.99. Its Standard, ad-free tier will now be $17.99, up from $15.49, while its Premium plan will increase by $2 to $24.99. Users who want to add an extra member will now pay $8.99, an increase of $1.
Outside of the US, the company also adjusted prices in Canada, Portugal, and Argentina.
On the earnings call, Netflix co-CEO Ted Sarandos touted the company’s strong content pipeline, with more movies and TV shows expected throughout the course of 2025.
“I definitely feel like the strength of [content] has never been better,” he said, calling out projects like “Happy Gilmore 2” and the return of “You,” “Stranger Things,” “Wednesday,” and “The Night Agent,” among others.
Investors viewed a price hike as long overdue following a banner 2024 for the company. “We’ve been expecting a price increase in the US market for quite a while now,” Geetha Ranganathan, senior analyst at Bloomberg Intelligence, told Yahoo Finance’s Morning Brief program prior to the release.
Tuesday marks the first time the company raised the price of its two-year-old ad tier, which — even with the $1 price increase — remains one of the cheapest ad plans among all of the major streaming players.
The other tiers of service have seen price hikes before. Netflix last raised the price of its Standard plan in January 2022, upping the monthly cost to $15.49 from $13.99. The company increased the cost of its Premium tier by $2 to $19.99 a month in 2022 and then raised it again in October to $22.99.
The streamer had a standout 2024, ending the year with two back-to-back NFL games, a successful “Jake Paul vs. Mike Tyson” boxing match, and the return of “Squid Game.”
Notably, the Jake Paul and Mike Tyson match attracted over 108 million global viewers, becoming the most-streamed sporting event of all time. For context, the 2024 Super Bowl, which was the most-watched American TV broadcast ever, pulled in 124 million US viewers.
Similarly, the NFL games averaged around 30 million viewers. According to Netflix, it was its most-watched Christmas Day ever in the US.
FILE – Mike Tyson steps on the scale during a weigh-in ahead of his heavyweight bout against Jake Paul, in Irving, Texas, in Irving, Texas. (AP Photo/Julio Cortez, File) · ASSOCIATED PRESS
The company will continue to double down on sports amid the recent debut of WWE Raw. Rumors have also swirled the company could bid on UFC rights. The company did not comment on a potential UFC bid when asked on the call, although it did hint it’s open to welcoming more sports, depending on the financials.
“We are constantly trying to broaden our programming, and live events is one of those things. And sports is part of that,” Sarandos said on the call. “If there was a path where we could actually make the economics work for both us and the league, we certainly would explore [more sports content.] But right now, we believe that the live event business is where we really want to be.”
Looking ahead, the company said engagement remains strong, with each member spending about two hours per day on the platform.
“When you’re going to ask for a price increase, you better make sure you have the goods and the engagement to back it up,” the executive said. “What we have going into 2025 is just that.”
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].
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