Netflix Price Hike Revealed, Effective Immediately
Netflix subscribers will be paying $2 to $3 more for some subscription plans.
Some Netflix subscribers now have to reach deeper into their pockets. The streaming company announced Wednesday hefty price increases affecting two of its ad-supported plans, the basic plan and the premium plan. Effective immediately, the price increases — ranging from $2 to $3 — impact some consumers in the U.S., U.K., and France.
In the U.S., the cost of the lowest tier plan without advertising, the basic plan, saw a $2 increase, jumping from $9.99 to $11.99. The basic plan is no longer available to new subscribers, with Netflix axing the subscription tier back in July. Under the new price hike, the premium tier, which allows for unlimited ad-free viewing, Ultra HD, six downloads, viewing on four supported devices, and more, rose $3 from $19.99 to $22.99. The cost of the streamer's ad-supported tier ($6.99 per month in the U.S.) and standard plan ($15.49 per month) are not affected by the price hikes.
Similar price increases were announced for some subscription tiers in the U.K. and France. U.K. subscribers will now have to pay £7.99 per month for the basic plan and £17.99 for the premium plan. In France, the basic plan now costs €5.99 and the premium plan costs €5.99.
"While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same – a range of prices and plans to meet a wide range of needs, and 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."
The price hike in the U.S. marks the first since early 2022, when the streamer hiked the price up by $1 or $2 for all of its plans in both the U.S. and Canada. At the time, the company said it was "updating our prices so that we can continue to offer a wide variety of quality entertainment options." The latest price hike, however, comes as the streamer continues to focus on its monetization efforts, which have included its new ad-supported tier and a crackdown on password sharing. Announced Wednesday, the increases came as Netflix reported its third-quarter 2023 financial results, revealing that in the period from July 1-Sept. 30, the streamer saw its total global paid subscribers rise by nearly 9 million to total 247.15 million.