Netflix is kicking off the new year with a price increase for its subscription plans.
This price adjustment, which marks the first hike in the U.S. since October 2023, follows the company’s announcement of adding an impressive 19 million new subscribers in the most recent quarter, bringing its total membership count to 302 million. As a result, Netflix saw a 16% increase in year-over-year revenue.
In a letter to shareholders released on Tuesday, Netflix explained that the price increases—which will affect most plans in the U.S., Canada, Portugal, and Argentina—will enable the company to reinvest in itself and continue improving its service.
“We listen for signals like engagement, retention, acquisition,” co-CEO Greg Peters said during a Tuesday earnings call. “All of these indicators help us understand when we’ve achieved an increase in value. Once we’ve reached that point, we ask customers to contribute a bit more to help keep that virtuous cycle going.”
Netflix’s new subscription prices for 2025 are as follows:
- The ad-supported plan will now cost $7.99 per month, up from $6.99.
- The standard ad-free plan will increase to $17.99 per month, up from $15.49.
- The premium ad-free plan will rise to $24.99 per month, up from $22.99.
Netflix will begin notifying members of the price changes via email on Tuesday, with the new rates taking effect during the next billing cycle. New subscribers will see the updated prices immediately, as confirmed by Netflix spokesperson MoMo Zhou.
Additionally, Netflix’s letter mentioned the upcoming introduction of a new “Extra Member with Ads” plan in 10 countries. The plan will allow standard and premium subscribers in the U.S. to add extra members outside of their household for an additional $6.99 per month with ads. Without ads, the extra member will cost $8.99 per month, an increase from the previous price of $7.99.