Netflix announces that it’s raising prices for several of its subscription plans, including the Basic and Premium tiers.
If you’re a Netflix subscriber, you should be prepared to shell out a couple of extra bucks a month, but not every plan will be affected. Netflix announced today that it will be raising prices on several of its plans in the U.S., U.K, and France, including the Basic and Premium plans.
The Basic plan, which is currently being phased out and is no longer available to new members, will cost $11.99 per month, up from $9.99. The Premium plan, which allows subscribers to watch in Ultra HD, watch on four supported devices, and more, is jumping to $22.99 per month from $19.99. The Ad plan will remain at $6.99 per month, with the Standard plan also staying the same at $15.49 per month.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said in its third-quarter shareholder letter. “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.“
Netflix began cracking down on password sharing earlier this year and now states that it has “taken action” in every region Netflix is available. The streamer added that it saw a low cancel reaction in the aftermath of the plan. “The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention,” the Netflix letter reads. “As a result, we’re revenue positive in every region when accounting for additional spin off accounts and extra members, churn and changes to our plan mix.“
If you’re a subscriber to the Basic or Premium plans on Netflix, will you be paying the increased prices or is this your cue to cancel your subscription? It’s an expensive world out there.