Netflix is increasing subscription prices by up to 12.5 percent for all tiers, a move announced alongside its 2025 earnings report showing a net income of $11 billion, up from $8.7 billion the previous year. During the January earnings call, CFO Spencer Adam Neumann cited pricing gains, membership growth, and a doubling of ad revenue as key drivers for 2026. While the price hike was anticipated due to Netflix's failed February acquisition of Warner Bros.

Discovery's film and streaming assets, President Gregory K. Peters clarified the shelved deal has had no impact on Netflix's pricing strategy. This suggests the price increase stems from internal business decisions rather than the acquisition fallout.

For subscribers, the hike means higher costs unless they cancel with one click, as Netflix co-CEO Ted Sarandos noted last month. The move signals Netflix's continued focus on maximizing revenue per user despite the absence of the WBD deal.