Netflix (NFLX) Raises Subscription Prices Across All Streaming Tiers

Netflix (NFLX) has raised prices across all of its subscription plans, effective immediately.

According to the company’s website, the standard plan with advertisements has been increased by $1 to $8.99 per month. The standard plan without ads has risen by $2 to $19.99 per month, and the premium plan, which supports up to four devices simultaneously without ads, also increases by $2 to $26.99 per month.

This is the latest in a series of price increases by Netflix in the U.S. market, as well as abroad. The company has been looking to raise prices and boost revenue as it takes on more original content and signs expensive deals to stream a growing amount of live sports on its platform, ranging from professional wrestling to Major League Baseball (MLB).

Netflix’s Growth Strategy

Netflix recently signed a three-year deal with MLB to stream live baseball games, including the season opener and the annual Home Run Derby. The deal with Major League Baseball alone is costing Netflix nearly $200 million over the next three years. The company’s 2026 budget to produce original content stands at $20 billion, a 10% year-over-year increase.

The latest subscription price increase also comes weeks after Netflix lost out on its bid to acquire rival Warner Bros. Discovery (WBD). After a protracted bidding war, Warner Bros. ended up being acquired by Paramount Skydance (PSKY) for $110 billion. The loss of the Warner Bros. purchase leaves Netflix’s long-term growth strategy up in the air. For now, the company is boosting sales through higher prices.

Is NFLX Stock a Buy?

Netflix’s stock has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 31 Buy and nine Hold recommendations issued in the last three months. The average NFLX price target of $114.97 implies 23% upside from current levels.