Netflix is making headlines once again, but this time it’s not for the remarkable surge in subscribers or record-breaking earnings. It’s for a price increase. As part of its recent earnings announcement, Netflix revealed that it’s raising the prices of some of its subscription plans.
Starting now, users on the $9.99 per month Basic plan will see their monthly fee increase to $11.99. Those who have been enjoying the Premium plan at $19.99 per month will now need to pay $22.99. However, Netflix’s $6.99 ad-supported plan and the $15.49 Standard tier will remain at their current prices.
This price adjustment comes after Netflix last raised its rates in January 2022. Notably, it also stopped offering its $9.99 Basic ad-free plan to new and returning users in July. This move forced users to choose pricier plans to avoid ads. Now, the price hikes are affecting not only the US but also the UK and France.
Netflix, in a letter to shareholders, explained its decision to raise prices: “As we deliver more value to our members, we occasionally ask them to pay a bit more.” The company pointed out that its starting price is still competitive compared to other streaming services and that, at $6.99 per month in the US, it’s significantly less than the average price of a single movie ticket. But how occasional is too occasional?
Netflix must be answerable to that.
This price increase comes amid significant growth for Netflix. Over the past few months, the streaming service added 8.76 million new subscribers, bringing its global total to 247.15 million.
But all these don’t seem to be making any sense because all these growth and earnings are not helping in easing the subscribers. Price hikes are still happening.