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Netflix Hikes Prices — What That Means for Your Subscription

Photo from Dima Solomin via Unsplash

Netflix Hikes Prices — What That Means for Your Subscription

By Movieguide® Contributor

You might want to check your billing statement from Netflix next month as the company has just announced another price increase.

“When you’re going to ask for a price increase, you better make sure you have the goods and engagement to back it up,” said Netflix co-CEO Ted Sardanos during an investor call. The streamer’s last hike was in 2022, according to TODAY.

READ MORE: NETFLIX TO HIKE PRICES AGAIN, ANALYSTS PREDICT

“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” the company said.

Price increases will impact plans in the US, Canada, Portugal and Argentina.

Netflix broke down the hikes in an email to CBS:

  • A standard plan with ads will rise to $7.99 a month from the current $6.99 
  • A standard subscription will increase to $17.99 per month, versus the current $15.49
  • A premium plan will boost to $24.99 per month from $22.99 per month currently
  • Adding an extra member will now cost $8.99, up from $7.99

The increases will help Netflix reach its goals for the coming year, which the streamer shared in the Jan. 21 investors call:

  • Improve our core business with more series and films our members love, an enhanced product experience and growth of our ads business;
  • Further develop newer initiatives such as live programming and games;
  • Sustain healthy growth – we now forecast 2025 revenue of $43.5-$44.5B (+$0.5B vs. prior forecast, despite the strengthening of the US dollar) and an operating margin of 29%, up one point from our prior forecast.

Some have raised concerns over how the recent LA wildfires will impact production. Sardanos confirmed that for Netflix, “No meaningful delays in the delivery of the projects and no meaningful impact to the cash in 2025, but very meaningful disruption in people’s lives.”

“So, our goal is to keep everything on schedule safely, be mindful of folks who need time to work through the challenges of the fires, including, in some cases, loss of life and home,” he continued. “But this industry has been through a really tough couple of years, starting with COVID, going into the strikes, and now this.”

READ MORE: HOLLYWOOD WORRIES RECENT FIRES WILL DRIVE PRODUCTIONS OUT OF LA


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