World
Why Netflix Hiked Prices, Explained in One Chart
Why did Netflix just impose a price increase across U.S. plans? As the “KPop Demon Hunters” Oscar-winning hit song “Golden” says: “We’re goin’ up, up, up.”
It’s not rocket science. The formula is pretty simple: Invest in more content (Netflix is eyeing $20 billion in content cash spending in 2026, up 10%) to attract and retain streaming subscribers, and keep your profit margins ticking upward by increasing the retail price.
Under the new pricing, effective March 26 for new users and rolling out to current customers depending on their billing cycle, Netflix’s Standard plan (which has no ads and provides streaming on two devices simultaneously) is rising by $2, from $17.99 to $19.99/month. The ad-supported plan is going up a buck, from $7.99 to $8.99/month, and the top-tier Premium plan (no ads, streaming on up to four devices at once, Ultra HD and HDR) is increasing from $24.99 to $26.99/month..
But the question is: Why now?
First off, it would be difficult to imagine Netflix would have pulled this pricing lever — hiking fees for its approximately 86 million U.S. customers — if the deal to acquire Warner Bros. were still in play. That deal would have required approval by the Justice Department and other regulatory bodies, amid allegations by David Ellison’s Paramount Skydance (the winning bidder for Warner Bros. Discovery) that the combo of Netflix + HBO Max would create a monopolistic entity in the streaming biz.
Netflix strongly disputed that, asserting it would have had a roughly 21% share of the U.S. subscription-streaming market with the addition of HBO Max. However, the optics of a Netflix price hike as the WB deal was pending would be terrible, especially after co-CEO Ted Sarandos testified at a Senate hearing that “We will give consumers more content for less” through the Warner Bros. deal. (Sarandos meant Netflix would have bundled its service with HBO Max at a price discount.)
Without the need to worry about such appearances in the midst of a massive M&A deal, the reason Netflix feels confident in ratcheting up prices in its biggest market is illustrated by this chart from Wall Street analyst firm MoffettNathanson. It estimates revenue streamers generated in 2025 as a function of total number of hours viewed.
In a nutshell, it shows that Netflix delivers the best bang for the buck of this cohort — it pulls in 48 cents per hour viewed, lower than anyone else. That indicates Netflix not only has upside in ad revenue relative to the others but also that has room to raise its pricing from a competitive standpoint.
Even with the new price increases, Netflix will still have a sector-low revenue/hour viewed metric (call it in the 50-cents-per-hour range). As the MoffettNathanson analysts put it: “Netflix delivers significant value to its subscribers that has room to be better monetized over time.”
Note that all of Netflix’s competitors have also recently hiked prices. Disney+ and Hulu, HBO Max and NBCUniversal’s Peacock upped pricing last year, and Paramount+ raised prices in January. Next month, Amazon’s ad-free Prime Video tier (now called “Ultra”) is going up to $5/month.
And Netflix’s new pricing, while higher, keeps it roughly in line with the rest of the field. Indeed, its ad-supported tier remains cheaper than those from Disney+, Hulu, HBO Max and Peacock (and is now the same as Paramount+ with ads):
Netflix’s launch of the cheaper, ad-supported option, first introduced in November 2022, gave it an important tool to mitigate churn as it raises the price on its Standard (no ads) plans. Instead of presenting customers a take-it-or-leave-it price hike, Netflix can now steer those on the Standard package toward the lower-cost package with ads. In theory, the company is agnostic about which plan someone chooses: The ad revenue should make up the difference in subscription fees.
Netflix execs once swore they wouldn’t implement an advertising model, asserting that it’s a subpar user experience. But it’s clear people are willing to sit through ad breaks if it means paying less — and in the U.S., Netflix’s Standard With Ads plan is half the cost of the no-ads tier.
The streaming giant’s U.S. price increases reinforce its long-range strategy, according to MoffettNathanson’s Robert Fishman: It maintains a “wide gap between its highest and lowest tiers to simultaneously maximize monetization of its least price-sensitive subscribers while nudging more price-sensitive customers toward its still-nascent ad tier, driving engagement and, in turn, advertising revenue,” the analyst wrote in a research note Friday. “The result is a ‘best of both worlds’ approach that captures value across the full spectrum of its subscriber base and should drive even higher margins for the leading profitable streaming service.”
Will some Netflix customers cancel over the latest fee increases? Yes, of course. But the math indicates that overall, it will yield higher returns — letting the company dig an even wider moat against competitors.
Pictured top: Sadie Sink as Max Mayfield in Netflix’s “Stranger Things” Season 4
SEE ALSO: U.S. Household Spending on Streaming Video Services Remains Flat at $69 per Month, as 68% Now Pay for Ad-Supported Tiers
World
How Cheap Drones Are Changing Wars Like the Ones in Ukraine and Iran
A 3-D rendering of an Iranian Shahed-136 drone, a device with two triangle-shaped wings attached to a central fuselage. It has an engine the size of a small motorcycle’s and carries 110 pounds of explosives.
Engine the size of a small motorcycle’s
Carries 110 pounds of explosives
One of the biggest takeaways of the war with Iran is that it has proven itself to be a surprisingly capable adversary against the United States. In addition to its willingness to go on the offensive, Iran has forced the U.S. and its regional allies to confront the rise of cheap drones on the battlefield.
Iranian drones, made with commercial-grade technology, cost roughly $35,000 to produce. That is a fraction of the cost of the high-tech military interceptors sometimes used to shoot them down.
Cheap drones changed the war in Ukraine, and they have enabled Iranians to exploit a gap in American defense investments, which have historically prioritized accurate but expensive solutions.
Countering drones has been a major priority for the Pentagon for years, according to Michael C. Horowitz, who was a Pentagon official in the Biden administration. “But there has not been the impetus to scale a solution,” he said.
In just the first six days, the U.S. spent $11.3 billion on the war with Iran. The White House and Pentagon have not provided updated estimates, but the American Enterprise Institute, a conservative-leaning think tank, estimated in early April that the U.S. had spent approximately between $25 and $35 billion on the war, with interceptors driving much of the cost. Many missile defense experts also fear interceptor stockpiles are now running dangerously low.
Here is a breakdown of some of the ways the U.S. and its allies have countered Iran’s drones, and why it can be so costly.
Air-based strikes
In an ideal scenario, an early warning aircraft spots a drone when it is still several hundred miles out from a target, and a fighter jet, like an F-16, is dispatched from a military base. The F-16 can then use Advanced Precision Kill Weapon System (APKWS) II rockets to shoot a drone from about six miles away.
A 3-D rendering of an F-16 fighter jet firing an APKWS II rocket from under one wing. Two to three rockets are fired per drone, as per air defense protocol. Two APKWS II rockets and an hour of F-16 flight cost approximately $65,000, a little less than twice that of the Iranian Shahed-136.
Two to three interceptors fired per drone
These types of defensive air patrols are cost-efficient, but haven’t always been available because of the vast scope of the conflict. Iran has also targeted early warning aircraft that the U.S. needs to detect a drone from that distance, according to NBC News.
The other option for detecting and shooting down drones is a variety of different ground-based detection systems, but these systems are all at a disadvantage, as their ability to spot low-flying drones is limited by the curvature of the earth.
Anti-drone defense systems
One ground-based defense system the U.S. and its allies have built specifically to counter drones at a shorter range is the Coyote. It can intercept drones up to around nine miles away.
A 3-D rendering of a Coyote Block 2 interceptor, which looks like a three-foot tube with small rockets at one end. Two Coyotes cost approximately $253,000 or about seven times that of the Iranian Shahed-136.
The Coyote is significantly cheaper than many of the other ground-based defense systems available to the U.S. and its allies and historically effective at defending important assets. But despite being both effective and cost-efficient, relatively few Coyotes have been procured by the U.S. military in recent years.
When Iran-backed militias launched attacks on U.S. ground troops in the region in 2023 and 2024, there were so few Coyotes available that troops had to shuffle the systems between eight different bases in the region almost daily, according to a report from the Center for a New American Security, a Washington think tank.
Ship-based anti-missile defenses
Many of the longer-range ground-based defense systems the U.S. and its allies can use to combat drones are more expensive, as they are designed to shoot down aircraft and ballistic missiles, not drones. A Navy destroyer’s built-in radar system, for instance, can detect drones from 30 miles away and shoot it down with Standard Missile 2 (SM-2) interceptors. As in the air-based strikes, military protocol stipulates that at least two missiles be fired.
A 3-D rendering of the deck of a Navy destroyer firing an SM-2 missile from a built-in launcher, which looks like a 15-foot missile launching from a grid of openings on the ship’s surface. Two SM-2 missiles cost approximately $4.2 million, about 120 times that of the Iranian Shahed-136.
This misalignment between America’s defense systems and current warfighting tactics started after the Cold War, when the anticipated threats were fewer, faster, higher-end projectiles, not mass drone raids.
Iran often launches multiple Shahed-136 drones at a time, given their low price tag. The drones are also programmed with a destination before launch and can travel roughly 1,500 miles, putting targets all across the Middle East within reach.
“This category of lower-cost precision strike just didn’t exist at the time that most American air defenses were developed,” said Mr. Horowitz.
Ground-based anti-missile defenses
The Army’s standard air-defense system is the Patriot. Typically stationed at a military base, it can shoot down a drone from up to around 27 miles away with PAC-3 Missile Segment Enhancement interceptors. Military protocol stipulates that at least two missiles be fired.
A 3-D rendering of a Patriot launcher loaded with 17-foot PAC-3 MSE missiles, which looks like a tilted shipping container with scaffolding. Two PAC-3 MSE missiles cost approximately $8 million, about 220 times that of the Iranian Shahed-136.
Patriot missile defense system
Air defense training teaches service members to prioritize using longer-range defense systems first to “get as many bites at the apple as you can,” but those are the most expensive, said Stacie Pettyjohn, a senior fellow and director of the defense program at the Center for a New American Security.
But a costly defense can still make economic sense to protect a valuable target, especially those that are difficult to repair or replace, such as the nearly $1.1 billion radar at a military base in Qatar and the $500 million air defense sensor at a base in Jordan that were damaged early in the conflict.
Ground-based guns
Finally, there is what one might call a last resort: a ground-based gun. When a drone is about a mile away or less than a minute from hitting its target, something like the Centurion C-RAM can begin rapidly firing to take down the drone.
A 3-D rendering of a Centurion C-RAM, which looks like a gun mounted to a rotating, cylindrical stand. The gun fires 75 rounds of ammunition per second. Five seconds of firing the gun costs $30,000, slightly less than a single Iranian Shahed-136.
Centurion Counter-Rocket, Artillery and Mortar
Fires 375 rounds of ammunition in 5 seconds
Even though it is fairly cost-effective, the Centurion C-RAM is not the best option because it has such a short range.
Interceptor drones
There’s also what one might call the future of fighting drones: A.I.-powered interceptor drones. Interceptor drones like the Merops Surveyor can theoretically hunt and take down enemy projectiles from a short range.
A 3-D rendering of a Surveyor drone, which looks like a three-foot tube with wings and a tail. The Merops drone costs approximately $30,000, a little less than a single Iranian Shahed-136.
Merops system: Surveyor drone
Eric Schmidt, the former Google chief executive, founded a company to develop the Merops counter-drone system in conjunction with Ukrainian fighters, who have already been combatting Iranian drones in the war with Russia for years.
The U.S. sent thousands of Merops units to the Middle East after the conflict began, but it is unclear whether they have been deployed. The military set up training on the system in the middle of the war, as reported by Business Insider.
Other attempts to lower the cost-per-shot ratio of taking out a drone have failed.
The Pentagon invested over a billion dollars in fiscal year 2024 researching directed energy weapons, or lasers, that would cost only $3 per shot and have a range of 12 miles. Those systems have yet to be used in the field.
Despite the cost imbalance, the real fear for many in the defense community is the depleted stockpile of munitions.
“What scares me is that we will run out of these things,” said Tom Karako, the director of the Missile Defense Project at the Center for Strategic and International Studies in Washington. “Not that we can’t afford them, but that we’ll run out before we can replace them.”
World
Moscow-born gunman dead after Kyiv shooting rampage leaves at least 6 dead, 14 wounded: Zelenskyy
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A Russian gunman was killed by special forces Saturday in Ukraine after opening fire at a supermarket in Kyiv, killing six people and wounding 14 others — including a 12‑year‑old boy.
The 58-year-old shooter long resided in the Donetsk region and was born in Moscow, according to Ukrainian President Volodymyr Zelenskyy and Interior Minister Ihor Klymenko.
He took at least four hostages, killed one of them, and fatally shot four others on the street, Zelenskyy said. Another woman died at a hospital from her injuries.
Graphic video captured by witnesses showed the gunman shooting at a victim within close range on the street. Other bodies were seen lying on the pavement and in courtyards.
The gunman was seen walking with a weapon on the street. (Obtained by Will Stewart)
MANHUNT UNDERWAY AFTER GUNMEN STORM CHICK-FIL-A LEAVING 1 DEAD
Ukranian special forces stormed the convenience store after 40 minutes of failed negotiations, according to Klymenko.
At least fourteen people were wounded in the attack, though officials cautioned the number may rise as people continue to seek medical assistance.
Among the injured is a 12‑year‑old boy and a supermarket security guard, according to Kyiv Mayor Vitali Klitschko.
The gunman was pictured dead in the convenience store. (Obtained by Will Stewart)
NINE DEAD, 13 WOUNDED IN SECOND TURKISH MASS SHOOTING IN TWO DAYS
Zelenskyy said the shooter also set fire to an apartment prior to the attack, though it is unclear if any injuries resulted from the arson.
“My condolences to the families and loved ones of the victims,” Zelenskyy wrote in an X post. “…We wish all the wounded a swift recovery.”
The gunman had previously been prosecuted for criminal offenses, but held a valid weapons permit, according to authorities. Investigators from the National Police and the Security Service of Ukraine are investigating.
The gunman was seen holding and shooting a weapon in the street. (Obtained by Will Stewart)
GUNMAN OPENS FIRE AT HIGH SCHOOL IN TURKEY, WOUNDING AT LEAST 16
Ukraine’s security service labeled the attack an act of terrorism.
“All available information about him and the motives behind his actions is being thoroughly investigated,” Zelenskyy said. “Every detail must be verified.”
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One of the shooter’s neighbors, Hanna Kulyk, 75, described him as an “educated, refined man,” who lived alone and did not socialize often.
“You’d never guess he was some kind of criminal,” Kulyk told The Associated Press.
World
Iran navy says any ship trying to pass Strait of Hormuz will be targeted
Top negotiator Mohammad Bagher Ghalibaf says US naval blockade of Iran’s ports is ‘a clumsy and ignorant decision’.
Published On 18 Apr 2026
Iran’s Islamic Revolutionary Guard Corps Navy (IRGC) says the Strait of Hormuz is closed and that any ship that attempts to pass through the waterway will be targeted, a dramatic reversal less than 24 hours after the critical shipping lane was reopened.
In a statement carried by Iran’s Student News Agency, the IRGC navy said on Saturday the strait will be closed until the United States lifts its naval blockade on Iranian vessels and ports. It said the blockade was a violation of the ongoing ceasefire agreement in the US-Israel war on Iran.
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“We warn that no vessel of any kind should move from its anchorage in the Persian Gulf and the Sea of Oman, and approaching the Strait of Hormuz will be considered cooperation with the enemy, and the offending vessel will be targeted,” it said.
Mohammad Bagher Ghalibaf, Iran’s parliament speaker and a senior negotiator in talks between Washington and Tehran on ending the war, said in a television interview that “the Strait of Hormuz is under the control of the Islamic Republic”.
“The Americans have been declaring a blockade for several days now. This is a clumsy and ignorant decision,” he added.
The reassertion of control came just hours after Iran had briefly reopened the strait, in line with a 10-day ceasefire between Israel and Lebanon. Oil prices dropped on global markets after Iranian Foreign Minister Abbas Araghchi said on Friday that the waterway was “completely open for all commercial vessels.”
More than a dozen commercial ships passed through the waterway before the IRGC reversed course.
Iranian gunboats reportedly fired on two commercial ships on Saturday, according to United Kingdom Maritime Trade Operations (UKMTO). India’s Ministry of External Affairs also said that two Indian-flagged ships were involved in a “shooting incident” in the strait.
Some merchant vessels in the region received radio messages from the IRGC Navy, warning that no ships were being allowed through the strait.
US President Donald Trump said Tehran could not blackmail Washington by closing the waterway and warned that he would put an end to the ceasefire if a deal before its expiry on Wednesday is not reached. Trump added that the naval blockade would “remain in full force”.
Iranian Supreme Leader Mojtaba Khamenei, meanwhile, said the navy was ready to inflict “new bitter defeats” on its enemies.
‘Two competing blockades’
Al Jazeera correspondent Zein Basravi said that Iran and the US are back where they were the previous day.
“Less than 24 hours ago, world leaders were praising what they thought was a breakthrough in this conflict, hoping Iran was signalling a confidence-building measure by opening the Strait of Hormuz, potentially leading to a ceasefire deal and a permanent end to the war,” he said.
“As disappointed as people may be, this isn’t entirely surprising. What we’re seeing now is a return to square one,” he added, saying there are now “two competing blockades in place”.
Al Jazeera’s Ali Hashem, reporting from Tehran, said Iran was using the strait to send a message.
“It’s clear that Iran is dealing with a situation in which they are not sure what’s on the table. So the Strait of Hormuz is once again the only space for engagement, even if it’s a negative engagement. And it’s the space where they are sending and conveying messages to the Americans, showing their leverage,” he said.
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