Will Netflix raise prices again? Analysts believe so

Whether Netflix plans to increase the prices of its streaming subscriptions in the future has been brought up again in light of its upcoming third-quarter earnings release.

Netflix subscribers in the US have to pay a monthly fee of $6.99 for the ad-supported plan, while the Standard and Premium tiers pay $15.49 and $22.99 per month, respectively. Both plans are ad-free.

The streaming giant's most recent surge came last fall when US subscribers saw a price increase for its now-defunct Basic plan and Premium tier. At the same time, the cost of these Netflix subscriptions also increased in the UK and France.

A hand can be seen holding a TV remote control with a “Netflix” button in front of a television screen with the Netflix logo. (Nikos Pekiaridis/NurPhoto via Getty Images / Getty Images)

Oppenheimer & Co. said in an Oct. 9 research note that it “expects an increase in premium pricing for other regions and, more importantly, an 8-15% increase in the standard plan.”

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The firm's Jason Helfstein said the price of the standard plan has remained unchanged since January 2022, when Netflix increased it by $1.50 in the US.

“In January 2022, the NFLX standard plan was priced at 53% versus competitors, now it is 4%. Meanwhile, the plans are 18%/9%/3% cheaper than Hulu/Max/Disney+ in the US,” he said in the note. “In addition, a 15% increase represents a 23% discount on the Premium plan, which is in line with the historical average.”

“A strong 3Q ad and 4Q content offering, including NFL, should further reduce churn risk,” Helfstein also said.

The Netflix logo is displayed on a mobile phone screen with the Netflix website in the background. (Beata Zawrzel/NurPhoto via Getty Images / Getty Images)

Taking the potential increase into account, Oppenheimer increased its estimates for average revenue per member in the fourth quarter and fiscal 2025 by 2%.

Tim Nollen, senior media tech analyst at Macquarie US Equity Research, raised his price target on Netflix on Friday, saying in a research note that he was “confident in the long term that ad tiers will be strengthened by sports and possible price increases.” The note offered insights into media technology companies ahead of the release of third-quarter results.

The analyst suggested that a possible increase could be on the cards for American subscribers.

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“We believe Netflix has strong pricing power as it has not increased prices for the standard tier since Jan '22 – Hulu and Max are now both more expensive than Netflix's standard tier,” Macquarie's research note said. “Netflix can also address churn by offering the cheapest video streaming service at $6.99 with advertising, underscoring its strong value for money.”

FOX Business has reached out to Netflix for comment.

Netflix executives have told analysts and investors that they look at signals like member acquisition, engagement and retention when deciding when to increase their subscription fees.

Earlier this year, co-CEO Gregory Peters said that Netflix viewed its crackdown on password sharing as a “surrogate price increase” and had not increased subscription prices during the rollout of that initiative.

The Netflix logo is displayed on a smartphone screen. (Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)

Netflix began restricting Netflix account sharing to people who “live together in a household” in earnest last year, allowing people outside of a household to either get their own separate membership or an “additional member” to the one they use Become an account.

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The “additional members” cost extra – $7.99 per month in the US – and have given the streaming giant a boost in subscribers and revenue.

“We offer a variety of pricing tiers so consumers can choose a plan that best suits their circumstances and needs,” the company says on its website. “In addition, we regularly adjust prices as this allows us to invest in the service to better serve our members. We are also testing different pricing approaches (including different plans and price points) to better understand consumer demand.”

Netflix and its content platform are available in over 190 countries worldwide.