Netflix Considers Future Price Increases Amid Positive Projections

Amid ongoing discussions about potential price increases for its streaming services, Netflix is evaluating various factors as its third-quarter earnings report looms. The platform currently offers U.S. subscribers an ad-supported plan for $6.99 per month, with ad-free Standard and Premium plans priced at $15.49 and $22.99, respectively. Last fall, Netflix implemented price hikes for these plans in the U.S., the U.K., and France.

Oppenheimer & Co. has anticipated a potential price hike, suggesting an 8% to 15% increase for the Standard plan across other regions. The firm’s research note by Jason Helfstein highlighted that the Standard plan’s price has been steady since January 2022, following a previous increase. Helfstein noted, “In Jan. 2022, NFLX Standard Plan priced at 53% premium to peers, this is now 4%. Meanwhile, plans [are] 18%/9%/3% cheaper than Hulu/Max/Disney+ in the U.S.” He further indicated that a 15% price increase would align with historical averages, offering a 23% discount relative to the Premium plan.

Oppenheimer’s projections, which account for potential pricing adjustments, have led the firm to revise its fourth-quarter and fiscal 2025 average revenue per member estimates by 2%. Additionally, Tim Nollen, an analyst from Macquarie US Equity Research, increased Netflix’s target price, citing the long-term value of its ad tier enhanced by sports content and possible price increases.

The potential for an imminent price hike could impact American subscribers, with Macquarie’s report emphasizing Netflix’s competitive pricing strategy. “We think Netflix boasts strong pricing power given it has not raised price on the standard tier since Jan ’22 — Hulu and Max are now both more expensive than Netflix standard,” stated the report. Netflix’s strategy to mitigate churn through its competitively priced ad-supported service also underscores its market positioning.

Netflix executives, including co-CEO Gregory Peters, have communicated to analysts and investors that the company considers member acquisition, engagement, and retention in their pricing decisions. Peters previously noted Netflix’s crackdown on password sharing as a “substitute price increase.” The company’s strategy required individuals outside a designated household to either acquire a separate membership or become “extra members,” with the latter option priced at $7.99 in the U.S.

Netflix’s website outlines its commitment to adjusting pricing periodically to reflect service investments, thereby enhancing member experience. With its platform accessible in over 190 countries, Netflix continues to adapt its pricing strategies to compete globally.