Netflix raises prices again as 'streamflation' fears reach breaking point
We've seen enough doom and gloom stories about everything costing more than it used to, but obviously, it's not just a dozen eggs or the price of the latest iPhone that is going through the roof. While the ashes of the console wars still burn low as Sony and Microsoft continue to vex PlayStation and Xbox owners with some bizarre business decisions, the streaming wars are arguably hotter than ever.
Netflix still rules the roost as king of the streaming services, but with the likes of Amazon Prime Video, Disney+, HBO Max, and Paramount+ snapping at its heels, being at the top of your game is something of a precarious situation.
As consumers tighten their belts when it comes to cutting back on non-essential subscriptions, streamers are fighting harder than ever to ensure we keep stumping up that monthly price of admission.
Unfortunately, scrambling for our custom seems to involve prices actually going up instead of tempting us with cheaper deals.
Netflix issues another price hike in 2026
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US customers aren’t strangers to Netflix tweaking its pricing, with this rolling out to other countries around the globe.
Netflix users in the UK are facing another price increase, marking the second increase in 2026. Some of you are still fuming about a February 2026 price hike, but in September, Netflix just increased the price of its basic tier by a third.
The cheapest standard plan with adverts has climbed from £5.99 a month to £7.99, marking a 33.4% increase.
Things are going up across the board, with the ad-free standard plan going up from £12.99 a month to £13.99.
The premium plan lets you stream on an extra device and add others to your plan, but again, it's risen from £18.99 a month to £20.99 a month.
Finally, adding another member to your subscription plan is up from £4.99 a month to £5.99 a month.
New customers have been immediately charged the new rate, while existing subscribers are being transitioned after receiving a rolling one-month advance notice via email.
What is streamflation?
Variety is concerned about 'streamflation' and how much longer things can really last until customers call it quits in terms of subscription service prices increasing. We're used to seeing the odd complaints about boycotts and cancelled memberships online, but how many people actually go through with it remains unclear.
According to research firm Forrester, the average price of an ad-free streaming service has soared by 54% between 2021 and 2025. This puts it well ahead of the 16% cumulative U.S. inflation rate during the same period.
This surge is put down to competition, with the big streamers supposedly attracting customers early with low rates. As pressure mounts to grow profit margins and content budgets climb, increasing subscription prices is the easiest way to claw back some dollars.
Then again, with Disney+'s maligned Secret Invasion said to have had a budget of up to $234 million while being a certified flop, or Netflix's The Electric State being one of the most expensive movies ever made but only having a 14% critic review on Rotten Tomatoes, some costly mistakes have been made.
Mike Proulx, VP and research director at Forrester, questions this business model, asking: “Consumers are fed up with streaming price hikes. Every price hike designed to increase profitability triggers consumers to conduct their own cost-benefit analysis and ask, ‘Is this still worth it?'"
Netflix's 'deep bench of content' supposedly makes it the least likely to be hit by rebelling customers, although Brian Pitz, senior equity research analyst at BMO Capital Markets, warns: "I think people are starting to choose which long-form content platforms they want to be with — and which ones they don’t.”
Despite Netflix increasing its ad-free plan in the USA from $6.99 four years ago to $7.99 in 2025, and to $8.99 in 2026, Netflix co-CEO Greg Peters says it's still “an amazing entry point” that he thinks offers “an incredible value."
Deloitte’s 2026 digital media trends report states that American households spend an average of $69 a month on streaming services, with 41% of those surveyed saying the content on there isn't worth the price they pay.
As Gen Z consumers pivot toward YouTube content, we've already seen Netflix ally itself with creators like Mark Rober, Drew Binsky, and Kevin Langue.
Something clearly has to change, but for now, the streamflation balloon continues to inflate.