Netflix has increased subscription prices across all its U.S. plans, marking its second price hike in just over a year. The company's ad-supported plan now costs $8.99 per month, up from $7.99, while the standard ad-free plan rose to $19.99 from $17.99. The premium plan, which includes 4K streaming, increased to $26.99 from $24.99. Additionally, the cost of adding an extra member to a household plan has also risen, with ad-supported plans now at $7.99 and ad-free plans at $9.99.
The price increases come as Netflix continues to expand its content offerings, including live events, video podcasts, and games. The company reported $12.1 billion in revenue for the October-December period, slightly exceeding analysts' estimates. Netflix has also been investing heavily in content, with plans to spend $20 billion in 2026, up from $18 billion in 2025.
While Netflix defends the price hikes by citing increased content investment, some consumers are showing signs of price sensitivity. According to Deloitte, two-thirds of streaming subscribers are now opting for lower-cost ad-supported services, a 20% increase from 2024. Free streaming services like YouTube, The Roku Channel, and Tubi have also gained popularity, potentially driven by rising subscription costs.
Netflix remains the most-watched streaming service by hours viewed, according to UBS analysts, and its ad-supported plan is among the cheapest compared to competitors like Disney+, Hulu, HBO Max, and Peacock. However, the company's failed bid for Warner Bros. Discovery's streaming and studio assets has raised questions about its long-term growth strategy.
Most major streamers, including Disney+, HBO Max, Peacock, and Apple TV+, have also raised prices in recent years as the industry seeks to improve profitability. Netflix's last price increase was in January 2025, and the company expects 2026 revenue to range between $50.7 billion and $51.7 billion, driven by membership growth, pricing adjustments, and a projected doubling of ad revenue.