Netflix is once again raising prices on its plans in the United States.
The subscription hike includes the first price increase for its ad-supported tier, which will now cost $7.99 per month after being introduced at $6.99 in November 2022. In addition, the standard ad-free tier is getting a $2.50 per month increase from $15.49 to $17.99, and the premium plan is getting a $2 bump from $22.99 per month to $24.99.
“As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix,” said the company in its latest shareholder letter.
Netflix’s last price increase was in October 2023, when the streamer eliminated its basic tier to new subscribers and increased the premium plan from $19.99 to $22.99 per month. Until now, the standard plan had remained at the same price since January 2022.
According to the shareholder letter, the company added 18.9 million subscribers in the fourth quarter. This doubled Wall Street’s expectations and brought its global total to 300 million. However, Netflix has claimed its operating costs have exploded past $10 billion for the first time.
Part of that is from Netflix’s huge leap into live content like a hot dog eating contest between Joey Chestnut and Takeru Kobayashi, a Jake Paul vs. Mike Tyson boxing event, and NFL Christmas games. Earlier this month, it also became the exclusive home of WWE Raw.