The word “Netflix” shines bright as Flora introduces the new season (3) of Netflix's “Bridgerton.”
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Netflix raises the price of most of its plans in the US.
The streaming giant announced Tuesday that its standard ad-free plan will increase from $15.49 a month to $17.99. Its cheaper ad-supported plan, which was recently introduced to attract more subscribers, will increase from $6.99 per month to $7.99.
Additionally, the monthly cost of the Netflix premium plan will increase from $22.99 to $24.99.
The company that reported fourth quarter on Tuesday it announced it would also raise prices in Canada, Portugal and Argentina.
Consumers had to face it numerous price increases in recent years on major streaming services, including Netflix and its competitors, including Disney applications and Warner Bros. Discovery Max. Streamers are increasingly turning to higher prices and ad-supported plans to achieve profitability.
“When you ask for a price increase, you better make sure you have the right merchandise and commitment,” Netflix co-founder Ted Sarandos said on a Tuesday call with investors, noting upcoming series and movies scheduled for release in 2025.
During Tuesday's call, co-CEO Greg Peters said recent price increases in international markets had been “smooth.”
Netflix has recently increased Cost its standard ad-free plan in 2022, while the last time its premium plan increased was in 2023. Meanwhile, in 2023, the company discontinued its cheapest basic ad-free option. While the plan is no longer available to new customers, Netflix has made it available increase the cost of this later in the same year.
Netflix dropped its basic ad-free tier shortly after introducing a cheaper ad-supported plan in November 2022 in response to slowdown increase in the number of subscribers during this time. Netflix in November he said reached 70 million monthly active users worldwide on its advertising plans. For the first time, Netflix has changed the price of its ad-supported plan.
The company is also enforcing a crackdown on password sharing to increase the number of customers paying for its services.
As part of this change, Netflix has allowed subscribers to add “additional members” to their accounts. The streamer said Tuesday that the cost of additional members on its standard ad-free plans will increase from $7.99 a month to $8.99. Additional members on ad-supported plans will not see the price change.
Those efforts appear to be paying off: On Tuesday, Netflix said it added a record 19 million paid memberships in the fourth quarter, surpassing 300 million subscribers.