Netflix Raises Prices in the US, UK, and France
Netflix, the popular streaming service, has announced price increases in several key markets, including the US, UK, and France. The price hikes come into effect today.
In the US, the Premium plan, which was already the most expensive, has now increased from $19.99 to $22.99. The Basic plan, no longer available to new customers, has also seen a price increase from $9.99 to $11.99 per month. The Standard and Standard With Adverts plans will remain at their current prices: $15.49 and $6.99 respectively.
Compared to its rivals, Netflix’s Premium plan was already considerably more expensive. Disney Plus recently raised its price to $14 without ads, Apple TV Plus is $6.99, Prime Video costs $8.99, and Hulu (No Ads) is priced at $17.99. However, many Hulu subscribers also have a bundle with Disney.
In the UK, Netflix’s Standard With Adverts plan remains unchanged at £4.99 per month, while the Standard plan remains at £10.99 per month. The Basic plan has increased by £1 per month to £7.99, and the Premium plan has gone up by £2 to £17.99 per month.
Along with the price increases, Netflix has also implemented stricter rules on account sharing. Additional users can no longer be added to the Basic or Standard With Adverts plans. However, subscribers to the Standard plan can add one extra user for $7.99, and Premium plan subscribers can add two users for the same price per person.
Each pricing tier offers different features. Premium users have access to Ultra HD 4K streaming and Spatial Audio, and can stream on four devices simultaneously. They also have the option to download shows and movies on up to six devices. The Standard plan offers Full HD streaming on two devices and allows two downloads. The Standard With Adverts plan offers Full HD streaming on two devices, but downloads are not supported.
Netflix’s price increases come on the back of impressive financial results. The company reported an 8% year-on-year increase in revenues to $8.5 billion and a 20% rise in profits to $1.6 billion. It also gained nearly 9 million new subscribers, surpassing industry predictions. Netflix credits its crackdown on password sharing for driving new subscriptions. Ad-funded memberships have seen a 70% increase, with 30% of new ad-funded subscriptions opting for that service.
During the earnings call, Netflix co-CEO Greg Peters did not rule out future increases to other plans.
The earnings call also revealed details about Netflix’s recent restructuring and layoffs in its animation division. The company announced a new multi-year deal with Skydance Animation, headed by former Pixar boss John Lasseter. Skydance will produce animated movies for Netflix starting in 2024.
While Netflix’s financial success is evident, some users may find it difficult to reconcile another price hike with the company’s overall profitability. Last year, Netflix’s two CEOs received over $100 million in compensation. The new co-CEO, Greg Peters, is expected to receive a compensation package of $34.65 million.
For users facing economic challenges, the combination of account access restrictions and increased subscription costs may lead them to reconsider their Netflix subscription.
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