Netflix has raised prices on all UK plans, with the ad-supported standard plan jumping from £5.99 to £7.99 per month, a 33% increase, while the ad-free standard plan now costs £13.99 and premium £20.99. This marks the second UK increase in about 19 months, following a February 2025 hike that took the ad tier from £4.99 to £5.99, leaving it 60% more expensive than at the start of last year. The company also raised US prices in March, its second increase there in 14 months, lifting the standard plan from $17.99 to $19.99. Shares fell 5.4% on Friday to $78.25. Historically, no Netflix price increase has ever led to a year of revenue decline; even the 2011 split, which caused a subscriber drop, saw revenue rise 48% that year. The closest call was 2022, when revenue grew just 6.5% after a January US price hike. The ad tier is now the fastest-growing revenue line, topping $1.5 billion in 2025, up over 150%, and management aims to roughly double it this year. Early US results show the increase "has gone well and as expected," with US and Canada revenue up 10% year over year. However, companywide revenue growth is decelerating, with second-quarter growth at 13% and third-quarter guidance at 11.7%, while full-year guidance is $51.0 billion to $51.4 billion, or 13% to 14% growth. Engagement is nearly flat, with hours watched up only 2% in the first half. The stock trades at about 20 times expected 2027 earnings, a valuation that already assumes continued pricing power.
Netflix IncNetflix raised UK prices again, including a 33% jump in the ad tier, and shares fell 5.4%.
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