Netflix has announced its latest price adjustments, marking the first-ever increase for its ad-supported plan and raising rates across all U.S. subscription tiers.
To begin with, the ad-supported tier, which debuted in 2022 at approximately $7 per month, will now cost around $8 per month. Meanwhile, the standard ad-free tier has experienced a more significant increase, rising by $3 to approximately $18 per month. Similarly, the premium plan has also been affected, with a $2 hike, bringing its cost to about $25 per month.
Note that these are only American price tags on Netflix’s subscription tiers and it is unclear if this surge will reach Pakistan.
The price hike coincides with Netflix’s most substantial subscriber growth to date. In the final quarter of 2024, the platform added a staggering 18.9 million new users, doubling analyst expectations and reaching a milestone of 300 million global subscribers.
This surge in subscribers is largely attributed to Netflix’s recent expansion into live content, which has proven to be a major draw. Events like the Jake Paul vs. Mike Tyson boxing match and Netflix’s inaugural NFL Christmas game broadcast have both set record viewership levels. At the same time, Netflix’s original programming continues to thrive, with Squid Game season two attracting an impressive 68 million viewers in its first week of release.
In addition to the pricing changes, Netflix has also introduced new subscription features. For instance, the “Extra Member With Ads” option allows ad-supported users to add external members for approximately $8 per month. Similarly, ad-free subscribers can add extra members for about $9 per month, offering additional flexibility to its users.
Other than new features and live content, the increase in Netflix users also has to do with the streaming platform’s end to password sharing, which forced many to get their own accounts.