Netflix has recently announced price increases for two of its subscription plans. During the company’s quarterly earnings report, it revealed that it is raising rates for its Basic and Premium plans. The Basic plan, which Netflix had discontinued earlier this year, is now priced at $12 for existing customers, up from the previous $10. Meanwhile, the Premium plan cost has increased from $20 to $23.
Netflix has decided to keep the prices of its ad-supported and Standard plans unchanged, at $7 and $15.49, respectively. Prior to this announcement, the last time the company raised prices was in early 2022.
In their earnings report, Netflix stated, “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — offering a range of prices and plans to meet a wide variety of needs. As we continue to provide more value to our members, we occasionally ask them to pay a bit more.” They emphasized that their starting price remains highly competitive when compared to other streaming services. For instance, at $6.99 per month in the US, it is much less than the average price of a single movie ticket.
Netflix’s efforts to limit password sharing have proven successful. Paid memberships have grown to 247.15 million, marking a significant 10 percent annual increase. In the third quarter, paid net subscriber additions reached 8.76 million, the highest increase in the past year. Additionally, Netflix’s ad-supported plan has gained traction, accounting for 30 percent of all new sign-ups in countries where it is available.
As Netflix adjusts to its post-pandemic landscape and increased competition, the company has altered its strategy. In addition to raising prices, implementing an ad-supported plan, and cracking down on password sharing, Netflix is venturing into the retail sector.
Netflix is not alone in raising its prices, as other streaming services like Disney+, Hulu, and HBO Max have also increased their rates within the past year. Furthermore, this trend extends beyond the streaming industry, with subscription-based services such as Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium, and Apple Music all having raised their subscription costs in the past year.