Netflix has recently rolled out price changes leading to an increase for select subscription plans in the US among other countries. In a shareholder communication dated October 18, the streaming giant revealed that it has introduced these pricing adjustments in the United States, United Kingdom, and France, showing a significant shift in their pricing strategy.
In their communication to shareholders, Netflix stated, “While we mostly paused price increase as we rolled out paid sharing, our overall approach remains the same – a range of prices and plans to meet a wide 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.”
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Which Subscription Plans Are Impacted in the US?
The prices for Netflix with ads ($6.99) and the standard plan ($15.49) are staying the same. However, the basic level will now be $11.99, and the premium will be $22.99.
“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,” said Netflix.
The basic plan, which is no longer an option for new or returning subscribers, is similar to the standard plan but provides streaming in HD (720p) resolution.
How Are Subscription Plans in the UK and France Impacted?
In the U.K. and France, the pricing for Netflix with ads (£4.99/5.99€) and the standard plan (£10.99/13.49€) will remain as is. However, the basic plan in the U.K. will undergo an adjustment to £7.99, while in France, it will be set at 10.99€.
The premium plans will now be available at £17.99 in the U.K. and 19.99€ in France.
Why is Netflix increasing prices?
In recent years, the streaming industry has ushered in “significant new opportunities,” as per the company’s perspective, providing consumers with enhanced convenience, an expanded range of choices, and greater control over their viewing experiences. Fundamentally, Netflix aims to solidify the growth of its content portfolio through these price adjustments.
“We want to sustain that virtuous cycle because when we partner with the best creators, we can delight our members, invest more in amazing TV series, movies and games and build an even more valuable business,” stated Netflix.
This announcement comes on the heels of several months of Netflix’s crackdown on password sharing. Netflix introduced a policy that entails an extra charge of $7.99 per month for adding an additional member to an account. As per the most recent shareholder note, Netflix has implemented this policy across all regions in which it operates.
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What is Netflix?
Netflix, a globally renowned online streaming platform, garners acclaim for its vast library of TV shows, films, documentaries, and diverse entertainment content, all accessible to subscribers through internet streaming. The service is reachable on an array of devices, such as smartphones, tablets, computers, smart TVs, and more.
Netflix garners acclaim for its in-house productions, branded as “Netflix Originals,” which incorporate a wide range of content, including movies, TV series, and documentaries. The platform earns honors for its user-friendly interface, a comprehensive content catalogue, and its much-admired collection of original productions.