On Thursday, Sen. Elizabeth Warren (D-Mass.) criticized Netflix Inc.'s (NASDAQ:NFLX) latest price increase.

Warren Calls Out Netflix Over Price Hike After $2.8 Billion Windfall

Senator Warren took to X and said, "Netflix just got a $2.8 BILLION payout from Paramount for its failed Warner Bros. deal," adding, "Then Netflix turned around and raised prices on millions of customers."

Netflix did not immediately respond to Benzinga's request for comments.

Netflix Raises Subscription Prices Across Plans

Earlier in the day, Netflix said it is raising prices by at least $1 per month, citing continued investments in original programming and live content.

The ad-supported plan now costs $8.99, up from $7.99, while the standard plan is priced at $19.99 and the premium tier rises to $26.99.

Fees for adding extra members have also increased, with ad-supported accounts costing $6.99 per additional user and ad-free accounts priced at $9.99.

Breakup Fee Tied To Warner Bros. Discovery Deal

The criticism follows Netflix's involvement in a high-stakes takeover battle for Warner Bros. Discovery, Inc. (NASDAQ:WBD).

After declining to raise its $82.7 billion offer, Netflix stepped aside, paving the way for Paramount Skydance (NASDAQ:PSKY) to emerge as the likely winner.

As part of the outcome, Paramount paid Netflix a $2.8 billion breakup fee on Feb. 27.

Streaming Industry Sees Broader Price Increases

Netflix's move reflects a broader trend across the streaming sector. Companies including Spotify Technology SA (NYSE:SPOT), Amazon.com, Inc. (NASDAQ:AMZN), Paramount and the Walt Disney Co. (NYSE:DIS) have all raised prices in recent months.

Price Action: Netflix closed at $93.32 on Thursday, up 1.13% and rose further to $94 in after-hours trading, gaining an additional 0.73%, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, Netflix is trending lower over the medium and long term, while showing an upward trend in the short term, with its Growth score ranking in the 94th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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