Netflix users were not happy about the streaming giant's Thursday decision to raise prices on its standard and premium plans. The announcement was made following an earnings call last week when chief operating officer Greg Peters hinted at another price increase. This is the first time the prices have jumped since January 2019.
The standard plan will cost users $13.99 per month, a $1 increase, while the premium service will jump $2 to $17.99 per month. The basic plan will remain at $8.99 per month, reports CNBC. Customers will get an email about the price change a month before it kicks in, and that is expected to be within the next two months. The standard plan allows users to watch 1080p quality content on up to two screens at a time, while the premium plan offers 4K resolution and HDR. Premium subscribers can also watch content on up to four screens at the same time. The basic plan only supports 480p resolution.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” the Netflix spokeswoman said in a statement to Variety. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
PSA‼️— TheBloomingNarcissus (@theDopechidhaa) October 29, 2020
Netflix just announced a price increase.
For those you who are leeching of my Netflix, it’s time to pay rent or you got to go honey 🤪
The decision came after Peters said the push to create more, high-quality original content would force the company to raise prices. "There is that opportunity to occasionally go back and then ask for members, where we’ve delivered that extra value in those countries, to pay a little bit more," he said.prevnext
Netflix shares jumped up more than 4% after the price change was announced, although it settled in the evening. Last week, Netflix saw a 6% drop in shares after its 2020 third-quarter earnings report fell short of estimates, reports CNBC. The company reported $6.44 billion in revenue. That was a bit more than expected, but it fell far short of global subscriber growth. About 2.2 million subscribers signed up, but analysts expected over 3.57 million. The company said the slow growth was due to the record numbers in the first half of the year, during the beginning of the coronavirus pandemic.prevnext
Netflix is hallucinating - this price increase is unnecessary— • leise (@lisalee_) October 29, 2020
One person suggested Netflix was moving close to "cancel price." Another noted how high the price of the streaming service is almost twice as much as what it cost when they first paid for it. "I am struggling with the increase to $15/month. That’s almost twice the price we signed up for, but is it twice the value?" the person wrote.
@netflix careful or your going to push people to download your shows. Do not increase the price.— JuiceWillams (@JuiceWillams) October 29, 2020
Some shows NEED more episodes/seasons.
Limiting shows to 3-4 seasons is a ridiculous strategy that I personally feel is going to be unjustifiable to consumers now with this new price structure.— Jack (@JackTweets44) October 29, 2020
"Netflix new price increase is the extra kick I needed to cancel my membership on my mooching family members," one Twitter user wrote. Another Twitter user said the streaming service has to stop quickly canceling shows. So many shows have been limited to just three or four seasons.prevnext
@netflix you guys increased the price before and now y’all tryna increase it again? At this point is it even worth it anymore 🙄— ᎹMaya Ꮿ (@XoPrincessMaya) October 29, 2020
Surprisingly, one Twitter user admitted that they need Netflix so much that they do not care about the price increase. "Netflix literally got me where they want, idgaf about a price increase," the person wrote.prevnext
Another Twitter user said the price increase was an example of "corporate greed," but they predicted people will still plan on paying the cost. "Netflix literally got me where they want, idgaf about With ANOTHER Netflix price increase on the horizon, that's now 12 dollars a month that I'll be saving. The content will stay s— just pricier s— a price increase," one Netflix critic bluntly put it.
About to hit 'cancel price'. They have until Q2 2021 to increase my value or I'm out.
BTW @netflix, raising your subscription price b.c you missed Q3 expections for new subscribers; it might make your shareholders happy for a minute, but you won't get new subscribers that way. https://t.co/Jdv2DupcP8— Scott Cardozo (@sjwc_17) October 29, 2020