Brace yourselves: Another Netflix price hike is here.
In a Wednesday earnings report, Netflix announced it’s raising the prices for US subscribers. But if you’re on the ad-supported plan or paying for Netflix Standard, your monthly fee is not changing. Instead, the price hike is only affecting users of the Netflix Basic and Premium plans.
The Basic plan, which was recently phased out for new users, goes up $2 per month from $9.99 to $11.99.
The Premium plan increases $3 from $19.99 to $22.99.
The Standard and ad-supported plan remain the same at $15.49 and $6.99, respectively.
"As we deliver more value to our members, we occasionally ask them to pay a bit more," Netflix said in justifying the price increase, which rolls out starting today in the US, France, and the UK. It was announced alongside $8.5 billion in Q3 revenue, a new quarterly record.
The last time Netflix announced a price increase for US customers was in January 2022. Since then, the company introduced an ad-supported plan, which has been experiencing rapid growth. “In Q3’23, our ads membership increased nearly 70% quarter-over-quarter and now accounts for ~30% of all new sign-ups in our 12 ads countries,” Netflix said today.
The ad-supported plan also helped Netflix add 8.8 million new subscribers during Q3, for a total of 247 million across the globe. This occurred even as the company has been cracking down on account-sharing in an effort to bolster revenue. “The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention,” Netflix said in the earnings report.
Netflix noted its $6.99 ad-supported plan is “extremely competitive” with other streaming services. “In the US, for example, it’s much less than the average price of a single movie ticket,” the company added.