After losing out on Warner Bros. Discovery, Netflix received a $2.8 billion breakup fee from Paramount Skydance for stepping aside.
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Although Netflix now has extra cash, you'll still be paying a little more to watch Stranger Things and Bridgerton. The world's biggest subscription streamer announced a price increase for the second time in just over a year.
How Much Will Netflix Subscriptions Go Up?
These increased prices apply to both new and existing Netflix customers. They took effect yesterday for new subscribers. Existing subscribers will receive an email a month before their prices go up.
Netflix's Standard With Ads plan will now cost $8.99 a month, which is $1 more than the previous $7.99.
The Standard plan (no ads, view on up to 2 devices simultaneously) is increasing by $2, from $17.99 to $19.99 per month.
Finally, the Premium plan (no ads, streaming on up to 4 devices at once, Ultra HD and HDR) is also going up by $2, from $24.99 per month to $26.99 per month.
Netflix explained the price increase in a statement to Variety.
"Our approach remains the same: We continue offering a range of prices and plans to meet a variety of needs, and as we deliver more value to our members we are updating our prices to enable us to reinvest in quality entertainment and improve their experience by updating our prices," it said.
Netflix last raised prices in early 2025.
This Increase Comes After Netflix Lost a Deal
Just a month ago, Netflix walked away from a deal to buy Warner Bros. Discovery after Paramount Skydance outbid the streamer, paying Netflix a nearly $3 billion breakup fee.
"Now we move forward, and we move forward with $2.8 billion in our pocket that we didn't have a few weeks ago," Netflix CFO Spence Neumann said.
However, it appears this price increase was planned before the deal was lost. In an earnings call on Jan. 20, before the breakup fee was received, Neumann said "pricing" would be one of the key revenue drivers this year, hinting this change was already in motion regardless of the deal outcome.
