Netflix Subscribers Paying 'Least Per Hour' Compared With Competition, Says Greg Peters: 'Our Pricing Philosophy Is Consistent'

Netflix defended recent U.S. price increases during its Q1 earnings call, saying subscribers now pay the least per hour of viewing versus competitors and that hikes were planned after delivering more value. Management reported stronger retention and record engagement in Q4 2025 and Q1 2026, and highlighted an $8.99 ad-supported tier as an entry point. Netflix topped Q1 revenue and EPS estimates, but the stock showed sharp downside intraday. The company noted it walked away from a Warner Bros. Discovery deal, receiving a $2.8 billion breakup fee. Overall, the results and management commentary aim to justify higher pricing amid elevated content spending, with mixed market reaction to the strategy.