The company raised the U.S. price of the premium ad-free plan by $3 per month to $22.99. The one-stream basic plan rose by $2 per month.
New Delhi: After introducing extra fees to share accounts earlier this year, Netflix is now planning to raise the monthly subscription plan for some streaming plans in the United States, Britain and France. The company announced the decision in a letter to shareholders on Wednesday, saying customers in these regions can expect to see the price increases today, with new subscription changes rolling out to subscribers in Germany, Spain, Japan, Mexico, Australia and Brazil next week.
“As we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said while announcing third-quarter earnings results. “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.”
Almost 9 million subscribers joined Netflix around the globe in the third quarter, surpassing Wall Street analysts’ forecast for 6 million, according to LSEG. Netflix said it expected a similar number of additions in the current quarter. The strong performance showed Netflix was thriving despite Hollywood labor tensions that shut down a large swath of U.S. production. Netflix makes many of its shows and movies overseas, which accounted for the bulk of its new sign-ups.
Netflix subscription plan
The basic plan will go up to $12 per month, but it is unclear if there will be any changes to how many simultaneous streams come with the subscription or if extra members are allowed. The basic plan is no longer available for new Netflix subscribers. Premium will now cost $23 a month, and the price of the platform’s ad-supported ($7) and standard plans ($15.50 per month) will not change.
While Netflix hasn’t raised subscription rates since January 2022, it eliminated the basic $10 plan this past summer and charges an extra $8 per person if you share your membership with someone outside your household.
Netflix increased the U.S. price of its premium ad-free plan by $3 per month to $22.99. The cost for premium rose by 2 pounds to 17.99 pounds in Britain and by 2 euros to 19.99 euros in France.
The news comes after several of its streaming service rivals increased pricing this year. Competitors such as Disney Plus, Hulu, Peacock, Discovery Plus and Paramount Plus have all implemented price hikes within the last three months. Compared to Disney Plus and Hulu, Netflix’s new pricing plan will be similar.