Netflix - the world’s leading streaming platform - has unveiled plans to raise subscription fees across several countries - including the United States, Canada, Argentina, and Portugal.
The company attributed the price increases to a need to reinvest in its platform and improve the overall user experience for its growing global audience.
The decision comes on the back of a significant surge in subscribers, with nearly 19 million new members joining the service in late 2024. Netflix’s subscriber base now stands at a staggering 300 million worldwide, further cementing its dominance in the competitive streaming market.
New pricing structure
In the United States, all but one of Netflix's subscription plans will see a price hike. The standard ad-free plan will rise from $15.49 to $17.99 per month, while the ad-supported plan will increase by $1, bringing the cost to $7.99 per month. The premium plan, which offers the highest streaming quality and supports additional devices, will see a $2 increase, reaching $24.99.
In Canada, Portugal, and Argentina, similar price adjustments have been announced. Netflix’s earnings report emphasized that these hikes are necessary to fund the company’s ongoing content expansion and technological improvements.
“We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix,” the company stated in a press release.
Factors driving growth
Despite the price hikes, Netflix’s subscriber growth shows no signs of slowing down. The surge in subscriptions was driven by the release of highly anticipated content, including the second season of the hit South Korean drama Squid Game, as well as major sporting events like the highly publicized boxing match between influencer Jake Paul and former heavyweight champion Mike Tyson.
In an effort to diversify its content, Netflix has also expanded its live event offerings, including more WWE wrestling content, and secured the broadcasting rights for the 2027 and 2031 FIFA Women’s World Cups.
Future plans
Looking forward, Netflix continues to innovate and diversify its offerings. Alongside the price adjustments, the streaming giant is introducing a new "Extra Member with Ads" plan.
This will allow ad-supported subscribers to add an additional member outside their household for an additional fee, as part of Netflix’s ongoing crackdown on password sharing.
Despite the price increases, Netflix remains confident in its market position. The company has revealed plans to focus on major milestones rather than quarterly subscriber growth updates in the future. Netflix also noted that it still accounts for less than 10% of TV viewing in the markets it serves, signaling further growth potential as global streaming adoption continues to rise.
