Netflix prices are rising again, hitting $27 a month
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Netflix prices in the U.S. are going up — again.
For the second time in a little over a year, the streaming service will demand a few more dollars a month from its subscribers. Netflix’s standard plan with ads will now cost $8.99, up $1. Both the prices for the standard plan with no ads and the premium plan are rising by $2, to $19.99 and $26.99, respectively. The changes were reflected on the streamer’s website Thursday.
“Our approach remains the same: We continue offering a range of prices and plans to meet a variety of needs, and as we deliver more value to our members we are updating our prices to enable us to reinvest in quality entertainment and improve their experience by updating our prices,” said a Netflix spokesperson in a statement.
Major League Baseball’s opening day looks a bit different this year. Instead of playing multiple games all day, Netflix will exclusively air the first game between the Yankees and the Giants on Wednesday.
These price increases come at a time when Netflix continues to grow its content library. In addition to its original films and TV series, the Los Gatos company now streams podcasts, live events and offers a selection of games. On Wednesday night, it streamed Major League Baseball’s opening day game for the first time to a global audience.
New data from Deloitte recently revealed that the average subscribing household has remained consistent year-over-year, spending an average of $69 a month on streaming video services. However, there are growing indications of price sensitivity among consumers, as two-thirds of streaming subscribers are now opting for lower-cost ad-supported services, marking a 20% increase from 2024.
Last year, four streaming services raised their prices, prompting many of their customers to elect the more affordable ad-supported tiers. According to new research from Deloitte, two-thirds of streaming subscribers are now paying for ads, revealing an increase in price sensitivity.
Michael Smith, a professor of information technology and public policy at Carnegie Mellon University, previously said the price hikes are all guided by data, as “streaming platforms can observe in real time how consumers respond to price changes.”
“One thing that deserves to be said is in a world of limited data, a lot of pricing decisions were made by gut feel. That’s not the world we live in today,” said Smith in a statement.
Netflix shares ended the day Thursday up a little over 1% at $93.32.
