Netflix hikes prices following failed acquisition bid

Netflix has confirmed a new round of price increases for its streaming service, affecting both its ad-supported and ad-free subscription tiers, as well as the cost to add extra users. The price adjustments, which were first spotted by the publication Android Authority and subsequently confirmed to TechCrunch, represent the first time the streaming company has raised its subscription rates since January 2025.

According to Netflix, the price changes are intended to reflect improvements to the service’s quality and its “wide range of entertainment” offerings. The company has established different timelines for when these changes will take effect. New members who sign up for the streaming service will see the updated plan prices starting March 26. Meanwhile, existing subscribers will be notified of the changes by email one month before the new prices are applied to them.

The price changes affect multiple subscription tiers and the cost of adding extra viewers outside of a primary household. The updated monthly pricing structure includes the following changes:

• Ad-supported tier: The cost of the ad-supported tier—a subscription plan that includes advertisements—has increased to $8.99 per month, up from its previous cost of $7.99.
• Standard plan: The standard ad-free plan now costs $19.99 per month, representing a $2 increase from its previous cost of $17.99.
• Premium plan: The premium plan has increased to a new cost of $26.99 per month.
• Extra user (ad-supported): The cost to add an extra user to an ad-supported plan is now $6.99, compared to the previous cost of $7.99.
• Extra user (ad-free): The cost to add an extra user to an ad-free plan has increased to $9.99, up from the previous cost of $8.99.

These subscription price hikes follow Netflix’s recent decision to walk away from a potential acquisition. The company had previously submitted an $82.7 billion all-cash bid—an acquisition offer made entirely in cash—to acquire the media and entertainment company Warner Bros. Discovery. However, Warner Bros. Discovery announced that Paramount Skydance’s competing offer of $31 per share was a superior proposal and gave Netflix four business days to counter. Netflix declined to counter the competing bid and walked away from the deal.

Why it matters

The price increases arrive shortly after Netflix walked away from a massive acquisition attempt, signaling a shift in capital allocation strategy as the company focuses on internal growth rather than major M&A.