Post Content
On Thursday, Netflix Inc. said its U.S. pricing still delivers superior value even after the latest hikes raised some concerns, arguing subscribers pay less per hour of viewing than rival streaming platforms.
During the company’s first-quarter earnings call, Netflix co-CEO Gregory Peters said that the latest U.S. price increases were long planned.
“This change was part of our plan for some time,” Peters said. He added that Netflix tracks “quality-weighted engagement, plan selection, plan moves, and retention” before making pricing decisions.
Peters noted that the company raises prices only after delivering more value, noting, “Our pricing philosophy is consistent.”
Don’t Miss:
-
Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast
Netflix executives said early indicators suggest the latest price hikes are not driving users away. CFO Spencer Neumann pointed to improved retention across all regions.
“We saw stronger retention across the board this quarter,” Neumann said, adding that engagement reached record levels in both the fourth quarter of 2025 and the first quarter of 2026.
According to the company, these trends are consistent with past price increases, where subscriber behavior remained stable.
Peters argued that Netflix remains competitively priced despite higher subscription fees.
“In the United States right now, Netflix, Inc. subscribers are paying the least per hour of viewing compared to other SVOD offerings,” he said, adding that competing services can cost up to “two times per hour” for similar usage.
The company also highlighted its ad-supported tier, now priced at $8.99 per month, as an accessible entry point for users.
Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time
In March 2026, Netflix raised U.S. prices for the second time in just over a year, increasing all three plans by at least $1 as it ramps up spending on original content and live programming.
The move follows a prior hike in early 2025—the first increase to the standard plan in three years, historically its most popular tier.
The latest pricing changes come weeks after Netflix walked away from a deal for Warner Bros. Discovery, opting not to counter Paramount Skydance’s $31-per-share bid.