Netflix Raises Prices for U.S. Subscribers
Netflix (NASDAQ: NFLX) has increased its subscription prices for U.S. customers by $1 to $2 per month, following a pattern outlined in its fourth-quarter letter to shareholders released in 2024. This adjustment is part of the company’s strategy to boost revenue growth, which needs to continue at double-digit percentages to sustain its valuation. Currently, Netflix has approximately 90 million subscribers in the U.S. and Canada, outpacing competitors like Walt Disney, which reported 60 million combined subscribers for Disney+ and Hulu as of September 2025.
The average U.S. Netflix subscriber watches over one hour of content daily, significantly higher than Hulu’s average of 36 minutes. Despite the price hike, Netflix’s subscription rates remain competitive, particularly its ad-supported tier, which is well-positioned to capture more advertising revenue, potentially doubling this year. The company’s management expressed confidence in ongoing engagement and reduced churn rates, which support its pricing strategy.
