Netflix is ​​raising subscription prices in the U.S. and other markets, including increasing its ad-supported plans for the first time.

The streamer announced the price increase along with fourth-quarter 2024 earnings results on Tuesday, when it announced its largest quarterly subscriber growth ever, adding 18.9 million subscribers in the quarter.

Under the new U.S. pricing, Netflix's standard plan without ads will rise $2.50, from $15.49 to $17.99 per month. It's been three years since Netflix increased pricing on its Standard tier, which offers two simultaneous HD streams.

Additionally, Netflix's ad-supported plan costs $7.99 per month, up $1 from $6.99. The premium tier with four simultaneous streams will cost $24.99 per month, a $2 increase. The cost of adding additional members to the main account increases from $7.99 to $8.99 per month.

"As we continue to invest in programming and provide more value to our members, we will occasionally ask members to pay a little more so that we can reinvest in further improving Netflix," the company said in its quarterly letter to investors. To that end, we are adjusting prices today for most plans in the United States, Canada, Portugal and Argentina (this was incorporated into the 2025 guidance we provided in October 2024)."

During an earnings call with analysts, co-CEO Greg Peters said, “We believe our standard advertised starting price” — even after the price increase — “remains Incredible entertainment value. It’s a very accessible entry point.”

In the last major price increase in the United States in October 2023, Netflix increased the price of its basic plan in the United States from $9.99 to $11.99 per month, and increased the price of its premium plan from $19.99 to $22.99 per month. (In the U.S. and several other markets, it no longer offers a basic plan, with a "Standard with Ads" tier as an entry-level option.) At the time, ad-supported streaming still cost $6.99 per stream. In the United States, the standard plan is priced at $15.49 per month. Netflix last raised U.S. prices for its standard package in January 2022.

When announcing fourth-quarter earnings and price increases, Netflix raised its 2025 revenue forecast to $43.5 billion to $44.5 billion (an increase of $500 million from the previous forecast), and raised its operating margin to 29%, up 1 percentage point from the previous forecast. percentage point.

"Netflix has reaffirmed its leadership position and is definitely at the top of the streaming market," said Paolo Pescatore, analyst and founder of PP Foresight, commenting on the fourth-quarter earnings results. "Given the content of its programming Far more powerful and diverse than its competitors, it is now showing strength by adjusting its prices.”

Netflix has not raised subscription prices in 2024, but executives said multiple times last year that they were considering raising them.

On Tuesday, the company said ad-supported plans accounted for more than 55% of signups in its ad countries in the fourth quarter, with ad plan memberships growing nearly 30% quarter-over-quarter. Netflix on Tuesday also announced the launch of "Extra Member Ads" in 10 of the 12 countries where the company has established ad plans to "provide our members with more choice and flexibility." .

"We are on track to reach sufficient advertising membership in all advertising countries by 2025. Our first priority in 2025 is to improve our service to advertisers so that we can significantly increase advertising revenue," the company said in its statement . Investor Letter.