Netflix Raises US Prices for Second Time in Less Than Two Years
Variety • • business
Key Points:
- Netflix is raising prices for its three U.S. subscription plans, with the Standard With Ads plan increasing by $1 to $8.99/month, the Standard plan rising $2 to $19.99/month, and the Premium plan also up $2 to $26.99/month.
- The price hike reflects Netflix's confidence in its "pricing power" despite potential customer cancellations, as the company aims to offset churn with increased revenue per subscriber.
- These new prices apply to both new and existing members, with existing subscribers receiving email notifications a month before the changes take effect based on their billing cycle.
- The increase follows Netflix's recent decision to abandon its Warner Bros. acquisition bid, leaving the company with an additional $2.8 billion from the deal-breakup fee to reinvest in content and growth.
- Analysts estimate the price changes will boost Netflix’s average revenue per subscriber in the U.S./Canada by 6% year-over-year in 2026, supporting the company’s forecasted revenue growth and increased operating margins.
