Netflix Defends Price Hikes With a Surprising Argument
Nobody likes a price hike. Especially in the economic environment we're currently living in. But Netflix has a number that might make you feel better about yours.
During the company's first-quarter earnings call Thursday, co-CEO Gregory Peters made a case that's hard to immediately dismiss: despite back-to-back price increases in the past year, Netflix subscribers in the United States are paying less per hour of viewing than subscribers to any other major streaming platform. Competing services, Peters said, can cost up to twice as much per hour for similar usage.
"In the United States right now, Netflix subscribers are paying the least per hour of viewing compared to other SVOD offerings," Peters said.
Netflix Says You're Staying ... and Watching More Than Ever
The clearest sign that the price hikes aren't backfiring is what users are doing after them: staying and watching. CFO Spencer Neumann said the company saw stronger retention across all regions this quarter, with engagement reaching record levels in both Q4 2025 and Q1 2026.
"We saw stronger retention across the board this quarter," Neumann said. The company noted these trends are consistent with how subscribers behaved following previous price increases — which is to say, they largely didn't leave.
Peters described Netflix's approach as deliberate and data-driven, saying the company tracks "quality-weighted engagement, plan selection, plan moves, and retention" before making any pricing decisions. The latest U.S. increases, he added, were long planned.
"This change was part of our plan for some time," Peters said. "Our pricing philosophy is consistent."
Netflix just raised prices ... again. Premium now $26.99/mo. Standard $19.99. Two hikes in under two years, while they promised subscribers "more content for less."
— Wall Street Mav (@WallStreetMav) April 17, 2026
How do they keep getting away with it? Netflix has 325 million subscribers, 100 million more than their closest… pic.twitter.com/v0MUuG3W4S
What Netflix Now Costs (And What You Get)
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 ad-supported tier now sits at $8.99 per month — the entry point Peters pointed to as evidence the service remains accessible.
The increases follow a prior hike in early 2025, the first to the standard plan in three years.
The cost-per-hour defense isn't just spin — Netflix is spending heavily on content to justify it. The price increases come as the company accelerates investment in original programming and live events, a strategy that appears to be paying off financially.
Netflix reported first-quarter revenue of $12.25 billion, topping analyst estimates of $12.18 billion. Earnings came in at $1.23 per share — well above the expected 76 cents, a margin that suggests the pricing strategy is working as intended.
The company also recently received a $2.8 billion breakup fee after walking away from a potential deal for Warner Bros. Discovery — money that will likely flow back into the content machine that makes the cost-per-hour argument possible in the first place.