Netflix announced Tuesday, Jan. 21, that it will raise prices for American customers, including the first price hike for its ad-supported plan. That specific plan will now cost $7.99 per month, up one dollar. 

The price for Netflix’s standard plan without ads will increase for the first time in three years to $17.99 per month, a $2.50 increase.

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In a letter to shareholders, Netflix said the company will occasionally ask its members to “pay a little more” so it can “re-invest to further improve” the streaming service. 

“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. To that end, we are adjusting prices today across most plans in the US, Canada, Portugal and Argentina (which was already factored into the 2025 guidance we provided in October 2024).”

— Netflix

The subscription increase came as Netflix announced its biggest quarterly increase in paid subscribers. It gained almost 19 million and ended 2024 with more than 300 million subscribers around the world.

“Our Q4 slate outperformed even our high expectations: ‘Squid Game’ Season 2 is on track to become one of our most watched original series seasons, ‘Carry-On’ joined our all-time Top 10 films list, the Jake Paul vs. Mike Tyson fight became the most-streamed sporting event ever and on Christmas Day we delivered the two most-streamed NFL games in history,” Netflix said.