The price of Netflix is set to go up for all users
The price of Netflix is set to go up for all users
For the first time in over a year, the world’s largest streaming service will be hiking its price on all subscription plans.
It was only a matter of time, but the largest streaming service in the world has announced its first rate hike in 14 months. On Thursday, Netflix announced that it would be raising the cost of all of its subscription plans by $1 or $2, and that it will now cost more to let users outside of your household use your account. What makes matters worse is that when Netflix raises its prices, that often gives every other streamer permission to do the same. So we might see another rash of rate hikes in the coming months thanks to this announcement.
Key Details:
- It comes for us all: Netflix is raising the price on all three of its subscription plans.
- A matter of time: This is the first price hike for the streamer since January 2025.
- Pay to share: The price to allow friends and family to use your account is going up as well.
Netflix last raised its prices in January 2025, and this year, the increases will be very similar to what consumers saw a year ago. The lowest priced Standard with Ads plans jumped $1 to come in at a new total of $9 per month, while the Standard plan will move from $18 to $20, and the Premium plan will go from $25 to $27 per month.
Additionally, Netflix is upping its extra member fee, which allows customers to legally share their password with friends or family who don’t live in the same house as them. The ad-supported additional user fee is going from $6 to $7 per month, and the ad-free option is rising from $9 to $10 per month.
In keeping with the company’s tradition since launching an ad-supported plan, the prices for subscriptions with commercials are rising only by $1, while the ad-free options are jumping by $2 apiece. This reflects the added revenue opportunities available to Netflix via advertising, which allow ad-supported customers to pay less. While the streamer doesn’t publicly choose sides between its plans, by continually raising the price of its commercial-less plans by twice as much as its ad-supported ones, it seems clear that Netflix sees great profit opportunities with commercials.
While Netflix’s attempt to purchase the film, TV, and streaming assets of Warner Bros. Discovery ended up not being successful, the company clearly intends to continue adding more and more content, as it has begun to take on social video giants like YouTube and TikTok by going after popular video podcasts and preparing to introduce vertical video feeds for mobile users.
Coupled with the streamer’s increasing interest in major sporting events, like Wednesday night’s Major League Baseball Opening Night, even without the added financial burden of acquiring WBD, Netflix clearly feels comfortable with raising prices, given the additional content that it is supplying customers.
Netflix is often a bit of a canary in the coal mine when it comes to price increases. Due to its status as the unequivocal leader in the industry, the service often sets the tone for its competitors; if the time is right for Netflix to raise its prices, it just might be right for everyone else as well.
Netflix
Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”