Mike Peterson
Netflix is going to get more expensive, with the company announcing Friday that it is raising prices across its subscriptions in the U.S. and Canada for the third time in five years.
The cost for the basic streaming plan in the U.S. is rising by $1 to $9.99 a month, while the standard plan rose from $13.99 to $15.49 and the premium subscription rose from $17.99 to $19.99, according to the company's website.
In a statement to CNBC, a Netflix spokesperson said the higher prices will allow it to "continue to offer a wide variety of quality entertainment options."
While the price hikes will be effective immediately for new subscribers, Netflix says it will roll out the pricing changes gradually for current members. Netflix added that current customers will receive an email about the new pricing at least 30 days before they see the increase on their bills.
This is not the first time that Netflix has raised its prices. It hiked subscription costs in in 2019, as well as in 2020.
Wall Street has expected Netflix to raise prices as its customer growth wanes. Higher pricing is a key part of the streaming service's long-term strategy, particularly as competition grows from the likes of companies such as Apple TV+, HBO Max, Disney+, and Amazon Prime Video.
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25 Comments
Having difficulty considering keeping Netflix especially since I have the higher tier plan. I really don’t watch it that much since there isn’t much new movies, except for foreign ones. I have found some really good foreign movies but it’s tough reading the subtitles at times.
Netflix now goes on the once every three months schedule and I'll save money in the long run. That's what I do with all the channels on Amazon Prime.
The whippings will continue until morale improves mentality.
This company is following the same path the security company once I subscribed to. The monthly fee started like $30/month. Then it started to raise my subscription price faster and faster although I receive the same service. I called and was given exactly the same answer. Eventually when it tried to raise to $50, I switched to a new company at $31/month. After the switch this company wrote me offering me a subscription fee of $22/month. But there is no return for me. I install security to prevent being robbed. How ironic that the security is trying to rob me literally.
Is it raising prices as new customer growth wanes, or potential customers deciding they didn’t want to even start a relationship with a company that hikes rates so fast? Their moves to split current subscribers plans to sap state disc and download plans that would cost more, if they wanted both quickly followed by the increase in rates to cover the cost of streaming rights for Europe and other regions, was enough to turn me away. Why on earth should US customers pay more so they can stream movies in Europe? They should take out a loan, and let the European customers fees cover the cost of the rights. Seems like they were putting a lot of the financial heavy lifting on the backs of the US customers, to artificially keep the prices low in Europe, to corner the European market as much as they can, then raise prices in Europe. Netflix, get a loan, don’t abuse your US customers.