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The news of Netflix price increase comes as a result of mounting pressure on the streaming service to offer high-quality content. According to the CO-CEO, this price rise is in line with the company's concept, which is to sustain partnerships with existing creators and expand their networks to provide quality content in quantity, for its viewers worldwide.
In light of this, Netflix announced in a letter to shareholders, which accompanied its Q3 financial results, that it will begin raising prices for select customers in the United States, the United Kingdom, and France starting Wednesday, October 18.
In the United States, the basic plan, which is the lowest tier plan (without advertising and is no longer available to new members), will rise from $9.99 to $11.99, while the premium program, which enables users to connect up to 6 devices and view videos in Ultra HD, will rise from $19.99 to $22.99. The ad-supported plan will stay at $6.99, while the regular plan will remain at $15.49.
Netflix price increase in The US, UK, and France
In the United States, the pricing for Netflix with advertisements ($6.99) and the standard plan ($15.49) remain unchanged. However, the basic tier is now $11.99 and the premium level is $22.99.The basic plan, which is no longer available to new or returning users, is comparable to the standard plan but only streams in HD (720p).
Similarly, The costs for Netflix with advertisements (£4.99/5.99€) and the standard plan (£10.99/13.49€) remain unchanged in the United Kingdom and France. The basic plan in the United Kingdom, however, will now cost £7.99, while in France it will cost €10.99. Premium plans will now cost £17.99 in the United Kingdom and €19.99in France.
Netflix price increase: Why is it happening and what does it mean
During the third-quarter results call, Netflix Co-CEO Greg Peters declined to comment on when price hikes on the other plans would occur but said that their timing will be consistent with the company's "philosophy" of "occasionally" increasing prices to continue offering great content to viewers worldwide.
In a letter to the shareholders, Netflix said,
“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.”
The Netflix price increase and adjustments come as the streaming giant ramps up its revenue-generating initiatives on the site, including its new advertising tier, which saw its membership increase by over 70% from the previous quarter and 30 percent of signups in countries having this advertising plan choosing this particular tier.
The announcement of this Netflix price increase comes only months after the streaming service tightened down on password sharing, charging users an extra $7.99 per month to add an additional member to their account.
The pricing hikes were disclosed on Wednesday, October 18, when Netflix released its financial results for the third quarter of 2023. From July 1 to September 30, the streamer's total global paying subscribers increased by roughly 9 million to 247.15 million.
