Netflix Announces Price Hike: Here’s What You Need to Know
Netflix is implementing another price increase, which was revealed in the company’s third-quarter earnings report. Starting today, users who are subscribed to the $9.99 per month Basic plan will now pay $11.99. Those on the $19.99 Premium plan will see their rate rise to $22.99. Meanwhile, the $6.99 ad-supported plan and the $15.49 Standard tier will maintain their current pricing.
More on Netflix’s price increase.
Netflix had previously raised its prices in January 2022 and stopped offering the $9.99 Basic ad-free plan to new and returning customers in July, compelling them to invest more to avoid advertisements. Prices for the Basic and Premium plans are also increasing in the UK and France, with the ad-supported and Standard plans retaining their existing rates. In the UK, the Basic and Premium plans will be priced at £7.99 and £17.99, respectively, while in France, the Basic plan will cost 10.99€, and the Premium plan will be priced at 19.99€.
Plan in the US is considerably lower than the average cost of a single movie ticket.
In a letter to shareholders, Netflix stated, “As we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix writes in its letter to shareholders.” The company pointed out that their starting price is highly competitive compared to other streaming services. They used the example that their $6.99 per month plan in the US is considerably lower than the average cost of a single movie ticket.
However, the price hike has garnered discontent from many subscribers. A Reddit user expressed their dissatisfaction, saying, “First make more money with the crackdown. Then make MORE money with price hike. Will unsubscribe.” Another Reddit user mentioned, “The only thing they were successful in was pushing me to cancel my long term subscription. I guess that counts as success.”
According to the Netflix help page, they continue to add more TV shows and movies and introduce new product features. They stated that their plans and prices may change. “We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation,” they stated.
