The $1 to $37 Price LadderNarrow moat

Netflix (NFLX) — moat facet

Netflix now sells plans from $1 to $37 a month, so a price rise at the top sends members down the ladder rather than out the door.

Netflix no longer sells one product at one price. At the end of 2025 its plans ranged from the equivalent of $1 to $37 a month1, up from $1 to $32 a year earlier2. The top of the ladder rose five dollars in a year.

Highest plan price, US dollar equivalent ($ a month)32End 202437End 2025Netflix Forms 10-K FY2024 and FY2025
Five dollars more at the top in a year.

The bottom rung carries advertising. Netflix introduced a lower-priced ad-supported plan3, and by the fourth quarter of 2024 it accounted for over 55% of sign-ups in its ads countries4. Advertising revenue more than doubled to over $1.5 billion in 20255, and the company expects about $3 billion in 20266.

A ladder lets Netflix raise the top price without losing the price-sensitive member, who steps down rather than out. It is how a mature subscription extracts more from those willing to pay while keeping the rest.

Revenue other than membership fees is still "not a material component"7 of the total, the company says, even with advertising above $1.5 billion.

The ladder now includes an ads tier in 12 markets8, built on Netflix's own ad technology, the Netflix Ads Suite9. Owning the technology lets the company set the price of the cheapest rung by what advertisers will pay, not only by what members will pay.

The ladder works as long as members step down rather than leave. The figure that would show otherwise is advertising revenue; if it falls well short of $3 billion in 2026 while premium prices rise, members are leaving rather than trading down.

Moat trajectory: Widening

Top price up $5 in a year; ads revenue about doubling.

The number that tests this moat
Reported
Top of the price range, year end
$37 a month (2025), from $32 (2024)

How far the ladder stretches; a top price that stops rising would mean the premium tier has reached its limit.

Source: Netflix Form 10-K, FY2025 ↗
⚠ Threats to the moat
⚠ THREAT 01
Asia-Pacific Revenue per Member Fell From $8.50 to $7.29
Netflix's fastest-growing members pay the least: Asia-Pacific revenue per member fell from $8.50 to $7.29 as memberships rose half again.
References
  1. ReportedAt the end of 2025 its plans ranged from the equivalent of $1 to $37 a month, up from $1 to $32 a year earlier.
    Netflix Form 10-K for fiscal 2025 - Item 1 business and Item 7 overview: the single segment, pricing plans, Open Connect, employees and the end of membership reporting. — FY2025 · publ. 23 January 2026 · source ↗
  2. ReportedAt the end of 2025 its plans ranged from the equivalent of $1 to $37 a month, up from $1 to $32 a year earlier.
    Netflix Form 10-K for fiscal 2024 - paid memberships and average monthly revenue per paying membership by region for 2022-2024, regional revenue for 2022, and the 2024 currency impact. — FY2024 · publ. January 2025 · source ↗
  3. ReportedNetflix introduced a lower-priced ad-supported plan, and by the fourth quarter of 2024 it accounted for over 55% of sign-ups in its ads countries.
    Netflix Form 10-K for fiscal 2023 - the ad-supported plan, content obligations at the end of 2023 and 2023 share repurchases. — FY2023 · publ. January 2024 · source ↗
  4. ReportedNetflix introduced a lower-priced ad-supported plan, and by the fourth quarter of 2024 it accounted for over 55% of sign-ups in its ads countries.
    Netflix fourth-quarter 2024 shareholder letter, Form 8-K exhibit 99.1 - record net additions and ads-plan sign-ups. — Q4 2024 · publ. 21 January 2025 · source ↗
  5. ReportedAdvertising revenue more than doubled to over $1.5 billion in 2025, and the company expects about $3 billion in 2026.
    Netflix fourth-quarter 2025 shareholder letter, Form 8-K exhibit 99.1 - 325 million paid memberships, 2026 guidance, advertising revenue, named competitors, content licensing and the pause in buybacks. — Q4 2025 · publ. 20 January 2026 · source ↗
  6. ReportedAdvertising revenue more than doubled to over $1.5 billion in 2025, and the company expects about $3 billion in 2026.
    Netflix second-quarter 2026 shareholder letter, Form 8-K exhibit 99.1 - quarterly results, regional revenue, 2026 guidance, view hours, live programming and advertising - financial results, regional revenue and 2026 guidance. — Q2 2026 · publ. 16 July 2026 · source ↗
  7. ReportedRevenue other than membership fees is still "not a material component" of the total, the company says, even with advertising above $1.5 billion.
    Netflix Form 10-K for fiscal 2025 - Item 1 business and Item 7 overview: the single segment, pricing plans, Open Connect, employees and the end of membership reporting. — FY2025 · publ. 23 January 2026 · source ↗
  8. ReportedThe ladder now includes an ads tier in 12 markets, built on Netflix's own ad technology, the Netflix Ads Suite.
    Netflix third-quarter 2025 shareholder letter, Form 8-K exhibit 99.1 - the Brazil tax charge, the ads plan in 12 markets, US and UK view share and KPop Demon Hunters. — Q3 2025 · publ. 21 October 2025 · source ↗
  9. ReportedThe ladder now includes an ads tier in 12 markets, built on Netflix's own ad technology, the Netflix Ads Suite.
    Netflix third-quarter 2025 shareholder letter, Form 8-K exhibit 99.1 - the Brazil tax charge, the ads plan in 12 markets, US and UK view share and KPop Demon Hunters. — Q3 2025 · publ. 21 October 2025 · source ↗
Sources
Generated September 26, 2026