Key Points
Premium plan jumps to €21.99 from €19.99 in Germany.
Ad-supported tier rises 40% to €6.99, free base plan discontinued.
Netflix Q2 2026 revenue up 13% to $12.56 billion with 33.4% operating margins.
Meyka grades NFLX B neutral; 13 analysts rate buy despite 25.6x trailing PE ratio.
Netflix raised prices across Germany on September 4, 2026, marking its first increase in over two years. The premium 4K plan climbs to €21.99 from €19.99, while the ad-supported tier jumps 40% to €6.99. The company is also discontinuing its free ad-supported base plan for existing customers. Netflix justified the move by citing expanded content and new features, even as it faces tighter competition from Amazon Prime Video, which held 26% German market share versus Netflix’s 25% in Q4 2025.
How much Netflix costs now in Germany
Netflix’s premium plan with 4K quality and spatial audio now costs €21.99 monthly, up from €19.99. The standard plan without ads rises to €15.99 from €13.99. The ad-supported tier jumps to €6.99 from €4.99, a 40% increase. Extra household members pay €4.99 with ads or €5.99 without, up from €3.99 and €4.99 respectively. Existing customers receive one month’s notice via email before the price takes effect on their billing date.
Netflix phases out its cheapest option
The ad-free base plan is being discontinued in Germany. Existing customers still on this tier must upgrade to standard or premium pricing or cancel. Netflix stated it continuously increases value to members, justifying occasional price rises. New customers cannot purchase the base plan at all. The move forces budget-conscious users to either accept ads or pay more for ad-free viewing.
Stock gains despite price pressure and rising competition
Netflix stock traded at €82.67 on September 4, near August highs after a 13% rally. Q2 2026 revenue hit $12.56 billion, up 13% year-over-year, with operating margins at 33.4%. The company repurchased $4.7 billion in stock during the quarter, its largest buyback on record. Meyka grades NFLX a B with neutral recommendation, while 13 analysts rate it buy versus 2 holds and 2 sells. Yet competition tightened: Amazon Prime Video held 26% of German streaming market share in Q4 2025 versus Netflix’s 25%.
Why investors should watch the ad business
Netflix’s advertising tier is central to growth. The company generated a 33.4% operating margin in Q2 2026 while scaling ads, signaling pricing power. Management targets 31.5% full-year operating margin and €51.0 to €51.4 billion revenue for 2026, implying 13-14% growth. Free cash flow guidance of €12.5 billion exceeds historical levels, funding both buybacks and content investment. With a PEG ratio of 0.75 and forward EPS growth of 38.98% expected next quarter, the stock’s valuation remains supported by earnings momentum despite the 3% decline from recent highs.
Final Thoughts
Netflix’s German price hike mirrors its global strategy of raising fees as content expands and margins improve. With Q2 revenue up 13% and buybacks hitting record levels, the company is betting customers will accept higher prices. Meyka’s B grade and analyst consensus of buy suggests the stock can weather competition from Amazon Prime Video, though valuation at 25.6x trailing earnings leaves limited margin for error.
FAQs
Netflix cited expanded content and new features as justification. The company last raised prices in April 2024 and uses regular increases to fund content investment and improve service quality.
The free base plan is being discontinued. Existing customers must upgrade to standard or premium pricing or cancel their subscription by their next billing date.
The premium 4K plan now costs €21.99 per month, up from €19.99. This is Netflix’s first time exceeding €20 per month for a single-user plan in Germany.
Amazon Prime Video held 26% market share in Q4 2025 versus Netflix’s 25%, marking the first time Prime Video edged ahead. However, Netflix remains the most-used streaming service globally with 325 million subscribers.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author
Danny Kontos
Co FounderDanny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.
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