The streaming company increased monthly rates across all tiers, drawing support from analysts stating the move should strengthen revenue
Netflix has raised prices across its U.S. streaming plans, increasing the cost of all tiers in a move that analysts said should strengthen revenue even as it asks customers to pay more.
Under the new pricing, each plan rose by at least $1. The standard plan with ads now costs $8.99 a month, up from $7.99. The standard ad-free plan rose to $19.99 from $17.99, while the premium tier increased to $26.99 from $24.99.
Netflix also raised prices for extra members outside of a household. The ad-supported extra member fee increased $1 for both the ad-supported extra member fee, now $6.99, and the ad-free add-on, now $9.99.
The changes took effect for new subscribers on March 26, and existing members will be notified about a month before the higher prices reach their bills, depending on their billing cycle.
The increase marks Netflix’s second U.S. price hike in just over a year, following a previous round of increases in January 2025, and comes as the company continues to spend heavily on programming and new business areas, including live events and video podcasts.
Netflix told investors earlier this year that it expects to spend about $20 billion on content in 2026, up by $2 billion compared to 2025. The company also projected 2026 revenue of $50.7 to 51.7 billion.
The price increase reflects a broader trend across the streaming industry. Where major companies have raised subscription fees in recent years as they push for stronger profits in a competitive market.
While the higher subscription prices have the risk of customer pushback, Wall Street viewed the move as a positive sign for Netflix’s business, as it demonstrates Netflix’s confidence in a business model and pricing power.
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Senior analyst at Bernstein, Laurent Yoon, told Deadline the increases are good news for investors and said they were in line with Netflix’s past pricing pattern. He mentioned the higher rates could help secure double-digit revenue growth in 2026.
However, like many, including Morningstar analyst Matthew Dolgin, they didn’t see this coming. According to Deadline, Dolgin said he had not anticipated another round of price hikes until later in the year. Although he mentioned that Netflix had already signaled pricing would play a role in its revenue outlook.
Netflix’s advertising-supported tier was noted as an important part of the company’s strategy by analysts. Robert Fishman of MoffettNathanson told Deadline that the lower-priced ad plan gives Netflix more room to increase prices on its higher-end options while keeping more price-sensitive customers on the platform.
That approach could help Netflix limit subscriber cancellations while also expanding its advertising business.
Some risk remains. A larger shift of subscribers into the ad-supported tier could pressure revenue if advertising sales do not make up the difference from lower monthly fees. Still, analysts said Netflix appears to be betting that its mix of pricing tiers and growing ad business will support higher margins.
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