Netflix price hike signals streaming’s shift toward ad-supported options

Netflix's ad-free plan now is $4.50 more expensive, while the ad-supported plan has risen by $2

Netflix’s recent price increase for its ad-free standard plan to $19.99 per month highlights a growing trend in streaming: encouraging consumers to choose ad-supported tiers over pricier, ad-free options.

When Netflix launched its ad-supported plan three and a half years ago, the standard ad-free plan cost $15.49 per month and the ad tier was $6.99. Today, the ad-free plan is $4.50 more expensive, while the ad-supported plan has risen by $2, making the ad tier increasingly appealing as a value option.

The trend extends across the streaming ecosystem. Services like Peacock, HBO Max, Disney+, and Paramount+ have structured ad-supported tiers to emphasize value. For consumers subscribing to multiple platforms, the math is clear: paying nearly $75 for ad-free access across four services or $40 for ad-supported tiers makes the choice straightforward for most viewers.

Industry insiders note that ad-supported tiers are quietly becoming more lucrative than ad-free subscriptions. Targeted advertising, engagement tracking, and new ad products have allowed platforms to monetize viewers more effectively. Brian Wieser, an analyst at Madison and Wall, noted in a March 26 report, “Streaming CPMs remain more than double those of cable and broadcast television on average… There has been no dramatic drop tied to the addition of new advertising supply from platforms such as Amazon Prime Video or Netflix.”

Some services are pushing ads even further. Amazon Prime Video, for example, now automatically shows ads for all users, charging $5 per month for an ad-free experience. Meanwhile, live sports, where ads are often unavoidable, are becoming a bigger part of streaming strategies, increasing the importance of advertising revenue.

Apple remains an outlier in avoiding advertising across most content, with a source noting the company has no immediate plans to introduce ads, though it “would never say never.”

As subscription prices continue to climb and consumers face increasing costs across the board, streaming platforms are clearly leaning into ad-supported tiers as a sustainable path. For viewers, the message is simple: ad-supported streaming may become the new norm.