Netflix (NFLX) has announced it will not increase its US subscription prices for the time being, despite competitors like Disney+ and Peacock raising their prices this year. During the company’s third-quarter earnings call on Thursday, co-CEO Greg Peters stated, “We try to think about our pricing, not in relation to competitors, but based on the value we deliver to our members. We want to maintain a range of price points, which we believe is healthy.”
The streaming giant exceeded expectations for the third quarter, adding over 5 million subscribers, which contributed to a 5% surge in its stock during after-hours trading, bringing shares closer to their record high of approximately $730. Analysts on Wall Street have suggested that a price increase could serve as a positive catalyst for the stock, especially following Netflix’s biannual viewership report that revealed subscribers watched more than 94 billion hours of content from January to June.
Citi analyst Jason Bazinet highlighted the potential for Netflix to raise US prices by 12% in 2025, citing the platform’s low cost per viewed hour. The last price adjustment for Netflix’s Standard plan occurred in January 2022, when the monthly fee increased from $13.99 to $15.49. Concurrently, the Premium tier’s price was raised from $17.99 to $19.99, and again to $22.99 in October 2022.
Recently, Netflix phased out its lowest-priced ad-free streaming plan, making the $15.49 Standard plan the most affordable option for ad-free viewing. Meanwhile, the company has not yet raised the price of its ad-supported plan, which remains one of the lowest among major streaming services at $6.99 a month. Peters expressed satisfaction with the ad-supported plan’s pricing, stating, “We love the low price point and the increased accessibility it provides. It represents incredible value.”
While Netflix has implemented price increases in countries like Scandinavia and Japan, the company announced plans to raise prices in Spain and Italy as well. In the US market, Netflix will continue to assess metrics such as engagement, acquisition, and retention to determine the optimal pricing strategy for consumers.
“We will consistently offer consumers a variety of plan choices with the right features at the right price point, and we will evaluate and evolve our approach based on what we believe works,” Peters concluded.
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