Netflix has recently announced price adjustments for two of its subscription plans as part of its quarterly earnings report. The company will be raising the rates for its Basic and Premium plans. The Basic plan, which had been discontinued earlier this year, is being increased from $10 to $12 for existing customers. Meanwhile, the Premium plan will see a price increase from $20 to $23.
Notably, Netflix has decided to keep the prices for its ad-supported and Standard plans unchanged, which will remain at $7 and $15.49, respectively. Before this recent adjustment, the last price increase occurred in early 2022.
Netflix’s official earnings report 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 cater to a wide range of needs. As we continue to provide more value to our members, we occasionally request a modest increase in pricing. Even with the new pricing, our starting price remains highly competitive compared to other streaming services. For instance, at $6.99 per month in the US, it is significantly less expensive than the average cost of a single movie ticket.”
The company’s efforts to curb password sharing appear to have been successful, with paid memberships reaching 247.15 million, marking a significant 10 percent annual increase. Netflix added 8.76 million paid net subscribers in the third quarter, which is the most substantial increase in the past year. Additionally, Netflix’s ad-supported plan has gained traction, accounting for 30 percent of all new sign-ups in regions where it is available.
Netflix’s evolving strategy reflects its transition from the peak of the pandemic when it faced increased competition. In addition to the price hikes, the crackdown on password sharing, and the introduction of the ad-supported plan, Netflix is also making an unconventional move into the retail sector.
It’s worth noting that Netflix is not the only streaming service raising its prices. Over the past year, Disney+, Hulu, and HBO Max have all implemented price increases. This trend extends beyond streaming platforms, as services like Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium, and Apple Music have all raised their subscription costs in the last year.