Netflix has announced a price increase for its streaming plans in the United States, affecting both the standard and ad-supported options. Starting immediately, the standard plan without commercials will see a rise from $15.49 to $17.99 per month, while the ad-supported plan will increase from $6.99 to $7.99 per month. This decision follows the company's recent fourth-quarter earnings report and aims to attract more subscribers to its ad-supported option.
The price adjustments will impact most of Netflix's membership plans in the U.S., targeting both new and existing subscribers. The standard plan without commercials remains the most popular choice among Netflix users, offering an uninterrupted viewing experience at a higher cost. In contrast, the ad-supported plan, a relatively new offering, provides a more affordable alternative, albeit with commercials.
Additionally, Netflix has revealed plans to implement price hikes in Canada, Portugal, and Argentina. However, the specifics regarding the extent of these increases remain undisclosed. The timeline for when these changes will take effect in these countries has also not been clarified by the company.
Netflix's decision to increase prices is strategically aligned with its efforts to bolster its subscriber base, particularly for its ad-supported plan. With this plan being more cost-effective than the standard option, the company aims to lure cost-conscious consumers who may be willing to tolerate intermittent advertisements.
The latest price hike comes on the heels of Netflix's fourth-quarter earnings report. The financial results have evidently influenced the company's pricing strategy, as it seeks to optimize revenue while expanding its user base across different market segments.