Key Points
- Netflix is raising subscription prices by up to $2 per month as it invests in live sports and premium content.
- The ad-supported plan now costs $9, while ad-free tiers start at $20 per month.
- The increases reflect a broader industry trend as streamers seek profitability through pricing and advertising.
Streamers cannot catch a break.
Netflix on Thursday announced it was raising the price of its three streaming plans by as much as $2 as the company continues to invest in live sports and premium events.
Starting this week, the cost of Netflix with Ads rises to $9 per month, up $1 from its previous price, while the cost of Netflix’s commercial-free plans starts at $20 per month, up $2.
The cost of sharing a Netflix password with someone outside a customer’s immediate household has also increased to $7 per month if a subscriber has an ad-supported plan or $10 per month for commercial-free streaming.
Netflix previously told investors it expects to grab anywhere from $51 billion to $52 billion in revenue this year, with price increases being one of the elements behind its increased revenue. Advertising is another element that is bringing in the cash; as prices increase on its ad-free tiers, Netflix hopes to push more customers to its ad-supported plan, which allows the company to generate revenue twice off a single subscriber.
Netflix is not alone in this respect: Other streamers, including Disney Plus, Comcast’s Peacock and Starz, have raised subscription prices over the past few years as they attempt to make their businesses profitable while spending large sums on producing and licensing original content and premium live events.
For its part, Netflix has brought more live events to its platform over the past few years, including holiday National Football League (NFL) games, the opening day game from Major League Baseball (MLB), World Wrestling Entertainment (WWE) broadcasts and one-off boxing matches, among others.
Last year, a report from PricewaterhouseCoopers said price adjustments across premium streaming services will help the streaming sector attract nearly $113 billion in overall revenue by 2029, up from nearly $85 billion in 2024.
More Stories
- Netflix cost creeps past HBO Max, Prime Video as price increase takes effect (March 2022)
- PwC: Price hikes will help streaming revenue reach $113 billion by 2029
- Apple raises price of streamer Apple TV Plus to $13 per month
- Comcast to raise monthly price of Peacock to $11
- Philo adjusts price for customers billed through Apple
