Netflix (NFLX) has once again raised prices across all its subscription plans. Starting March 26, new members will have to pay the updated prices, while existing members will be gradually moved to the new pricing over the coming months. The increase comes as Netflix continues to enhance its platform and expand its entertainment library, offering more value to users.
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Netflix Raises Prices Across All Plans
Netflix’s ad-supported plan now costs $8.99 per month, up from $7.99. The standard ad-free tier has increased from $17.99 to $19.99, and the Premium plan is now $26.99 per month, up from $24.99.
The fees for adding extra members outside the same household have also changed. It now costs $6.99 for the ad-supported plan and $9.99 for the ad-free plan. This marks the second time in just over a year that Netflix has raised its prices across major subscription tiers in the United States. These occasional hikes are a sign of the movie streaming platform’s strategy to grow revenue per user while expanding into new content formats.
Netflix has noted that existing customers will see the new prices applied to their billing cycles in the following weeks, while new members pay the higher rates immediately. The entertainment company stated that they will notify users via email at least one month before the higher rates take effect. This notice period is part of the company’s effort to give customers enough time to adjust to the updated pricing as it rolls out across all plans.
Why Netflix Is Raising Prices and Recent Business Moves
The recent price increase reflects a series of improvements to Netflix’s services and the expansion of its entertainment options. The company has been improving its service by incorporating new content such as video podcasts and livestreaming. Additionally, they plan to revamp their mobile app and improve their short-form video feature.
In other recent business moves, Netflix has decided to back out of its all-cash deal to acquire Warner Bros Discovery (WBD). This is because Paramount Skydance (PSKY) has made a competing offer of $31 per share, which is better than their offer.
Is Netflix a Strong Buy?
According to TipRanks’ analyst forecast data, Netflix (NFLX) currently has a “Strong Buy” consensus, with 31 analysts recommending a strong buy, 9 recommending a buy, and none recommending hold or sell. The average 12-month price target is $115, implying about 23% upside from its current price near $93. Investors can use TipRanks’ Stocks Comparison Tool to check ratings, price targets, and performance for NFLX and other tech stocks.
