Netflix Price Shock: US Costs Soar, The UK Could Be Next

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Brace yourselves, Netflix fans – your monthly streaming bill might be about to get even pricier, yet again.

The streaming giant has just announced one of its biggest price hikes in years for US subscribers, with some plans jumping by as much as $2.50/month.

The Premium (4K) tier will now cost American viewers a whopping $24.99/month – and if history is any indication, UK prices might not be far behind.

The changes, announced alongside Netflix’s Q4 2024 earnings results this week, come despite the company celebrating its biggest-ever quarterly increase in subscribers – 18.9 million new sign-ups.

But all those new viewers haven’t stopped Netflix from deciding it’s time to squeeze a bit more cash from existing subscribers.

Watching Netflix on TV
Photo: Deposit Photos / VantageDrones

And in a surprising move that might worry UK viewers, even Netflix’s cheaper ad-supported plan is getting its first-ever price increase in the US.

While Netflix maintains its ad-supported tier is still “an incredible entertainment value”, UK subscribers paying £4.99/month for the same plan might want to keep a close eye on their bills in the coming months.

A History of Netflix Price Hikes

Netflix’s pricing strategy often follows a predictable pattern – prices typically rise in the US first, with UK increases following a few months later. 

The most recent major change in the UK came in October 2023, when Netflix raised its Premium tier by £2 to £17.99/month.

This came after significant changes to the Basic, ad-free tier, which began in July 2023 when Netflix stopped offering it to new subscribers in the UK.

Even existing Basic subscribers weren’t spared for long – in October 2023, their monthly fee increased from £6.99 to £7.99. Then came the final blow – in January 2024, Netflix announced they were retiring the Basic plan completely.

This meant viewers had to choose: either embrace adverts with the cheaper Standard with Ads plan (£4.99/month), or pay more for the ad-free Standard plan (£10.99/month).

These changes rippled through to TV providers as well. Sky was the first to react, stopping the Basic tier for new customers in December 2023, before moving all existing Basic subscribers to the ad-supported tier in September 2024.

Netflix Sky EE TV collage

EE TV held out longer, only ditching the Basic plan for new customers in August 2024.

All these changes point to Netflix’s clear strategy – pushing viewers toward either watching adverts or paying more for ad-free viewing.

And with their ad-supported membership growing significantly (now accounting for over 55% of new sign-ups in countries where it’s available), it seems their strategy is working.

Current UK Netflix Plans and Prices

At present, Netflix offers three main tiers in the UK:

The Standard with Ads Plan (£4.99/month):

  • Full HD (1080p) streaming quality
  • Watch on two devices at the same time
  • Most of Netflix’s content library (but not everything)
  • Several minutes of adverts per hour
  • Downloads available on one device

The Standard Plan (£10.99/month):

  • Full HD (1080p) streaming
  • Watch on two devices simultaneously
  • No adverts
  • Downloads on two devices
  • Access to the complete content library

The Premium Plan (£17.99/month):

  • Ultra HD (4K) and HDR where available
  • Watch on four devices at once
  • No adverts
  • Downloads on up to six devices
  • Spatial audio support
  • Access to the complete content library

Plus, there’s the “Extra Member” option at £4.99/month for sharing your account with someone outside your household (which came alongside Netflix’s password-sharing ban).

Netflix password login phone

The New US Prices – And What They Could Mean For The UK

Alongside its Q4 2024 earnings results this week, Netflix announced significant price increases across most of its plans in the US.

The company revealed these changes while celebrating its biggest-ever quarterly increase in subscribers – 18.9 million new sign-ups in Q4.

In their letter to investors, Netflix justified the increases by stating: “As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”

The increases are being rolled out across the US, Canada, Portugal, and Argentina, and while the UK hasn’t been mentioned yet, past experience suggests we might be next.

Here’s how the new US prices break down:

  • Standard with Ads jumping to $7.99/month (up $1 from $6.99)
  • Standard rising to $17.99/month (up $2.50 from $15.49)
  • Premium increasing to a whopping $24.99/month (up $2 from $22.99)
  • Extra Member cost rising to $8.99/month (up $1 from $7.99)

What’s particularly noteworthy is that this marks the first-ever price increase for Netflix’s ad-supported tier in the US.

Despite this, Netflix co-CEO Greg Peters maintains that their ad-supported starting price “is an incredible entertainment value” and “a highly accessible entry point.”

If Netflix follows similar percentage increases in the UK (and this is purely speculative), we might see:

  • Standard with Ads potentially rising to £5.99/month (up £1)
  • Standard possibly jumping to £12.99/month (up £2)
  • Premium potentially increasing to £19.99/month (up £2)
  • Extra Member fees possibly rising to £5.99/month (up £1)

It’s worth noting that these potential UK prices are just educated guesses based on previous patterns – Netflix might choose different price points, or even decide not to raise UK prices at all, for now.

However, given the company’s history of rolling out price increases globally, UK subscribers should probably prepare for changes in the coming months.

Impact on TV Bundles

Any potential UK price increase wouldn’t just affect direct Netflix subscribers. Sky, EE TV, and Virgin Media customers who get Netflix as part of their packages could also feel the pinch.

Sky and Netflix promotion
Photo: Sky

We saw this play out last year when Sky and EE TV had to adjust their offerings following Netflix’s Basic tier cancellation.

Sky eventually moved all Basic plan subscribers to the ad-supported tier, while EE TV gave existing customers until 2026 (or their next contract renewal) to keep their Basic plans.

If Netflix does raise UK prices, we might see these providers either absorb the cost (unlikely), pass it on to customers, or adjust their bundle structures again.

Netflix’s Growing Ad Strategy

The timing of these changes isn’t random. Netflix’s ad-supported tier has become a crucial part of their business model, with the company announcing it’s “on track to reach sufficient scale for ads members in all of our ads countries in 2025.”

They’re even introducing an “Extra Member With Ads” offering in most countries where they have an ads plan (though it’s not available in the UK, as of this writing).

For now, UK subscribers can still enjoy current pricing, but it might be wise to keep an eye on those monthly bills in the coming months. We’ll keep you updated on any changes as they’re announced.

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5 thoughts on “Netflix Price Shock: US Costs Soar, The UK Could Be Next”

  1. I subscribed to Disney for one particular programme. Once I watched it I cancelled.
    Why can’t we do the same with Netflix. Of course we can.

    Reply
  2. I’ll leave. The number of films in English is becoming limited and they don’t have the diversity they used to have. They are becoming ever more greedy.

    Reply
    • I’ve also noticed some of the movies and shows that are on netflix are also on bbc iplayer and itv x foe free (you couldn’t make this stuff up lol).

      Reply

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