Netflix has announced its latest price increase, affecting most of its plans in the US, Canada, Portugal, and Argentina. The standard ad-free tier will now cost $17.99 per month, while the ad-supported tier will rise to $7.99 per month. The premium tier, the most expensive option, will increase to $24.99 per month.

The price changes were revealed in Netflix's latest earnings report, which highlighted the company's strong performance in the last quarter of 2024. Netflix added 19 million new subscribers, the most in its history, indicating a continued demand for its services despite previous price hikes.

The ad-supported tier, which was introduced in 2022, will see a $1 increase from $6.99 to $7.99 per month. This plan is Netflix's cheapest option, offering a lower-cost alternative to its ad-free tiers. The standard ad-free tier, which is Netflix's most popular plan, will increase by $2.50 from $15.49 to $17.99 per month.

The premium tier, which offers additional features such as higher video quality and the ability to watch on multiple screens, will see a $2 increase from $22.99 to $24.99 per month. This tier is Netflix's most expensive option, catering to users who want the best possible viewing experience.

In a letter to investors, Netflix attributed the price increases to its continued investments in programming and delivering more value to its members. The company stated that it will "occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix." However, the company did not provide further details on the price changes when reached out by The Verge.

The price hikes come as Netflix faces increasing competition in the streaming market. The company has been investing heavily in original content, including live TV and film productions, to maintain its market lead. Despite the price increases, Netflix remains one of the most popular streaming services, with a vast library of content and a strong brand presence.

The impact of the price increases on Netflix's user base remains to be seen. While the company's strong performance in the last quarter suggests that users are willing to pay for its services, the continued price hikes may lead to subscriber churn and increased competition from rival streaming services.

As the streaming market continues to evolve, Netflix's price increases will likely be closely watched by industry observers and competitors. The company's ability to balance its pricing with the value it offers to users will be crucial in maintaining its market lead and driving future growth.