He added that people get “a lot of value for not a whole lot of money.” It’s because of all these different factors, and with Netflix becoming an even more central streaming service in people’s lives during the pandemic, that Netflix could ask for an extra dollar a month and people would pay.
Greg Peters, Netflix’s chief operating officer and chief product officer, said that as the company invests more into both content and tech developments, they’ll “occasionally go back and ask to pay a little bit more to keep that virtuous cycle of investment and value creation going.” Although Netflix is not influenced by competitor pricing, according to a person familiar with the matter, its new standard price is just $1 less than HBO Max’s $15 a month charge - a fee that many analysts claimed was too high for consumers.Īt the time, analyst Ross Benes, who covers Netflix for eMarketer, told The Verge that Netflix is still underpriced. Questions about price hikes came up during Netflix’s most recent earnings call this month. That costs money, and price hikes come as a result. Increased competition means Netflix needs to continuously step up its game to ensure it has both quality content and plenty of it, while also working to better the actual platform. Netflix has increased its annual content budget every single year over the last seven years, spending a once estimated $18.5 billion in 2020 alone, though that may have changed this year due to the pandemic. The price hikes also come as Netflix is looking to invest more heavily into its content slate and product features.
Prices are being updated “so that we can continue to offer more variety of TV shows and films.” “As always we offer a range of plans so that people can pick a price that works best for their budget,” the spokesperson added. Prices are being updated “so that we can continue to offer more variety of TV shows and films,” a spokesperson told The Verge. Now, the US alone has HBO Max, Disney Plus, Peacock, TikTok, YouTube, Twitch, and Fortnite. A few years ago, Netflix’s biggest competition in the streaming space was Hulu, and the company vied for people’s attention being split playing video games, watching YouTube, and sleeping. The price hikes also arrive at a time when people have more options for entertainment than ever before - especially in the United States. Netflix rolls out price changes on a country-by-country basis and the change “in the US does not influence or indicate a global price change,” a Netflix spokesperson told The Verge. Recently, Netflix increased the cost of some plans in Canada. Industry insiders have long anticipated another round of price hikes at Netflix, which last increased subscription fees in the United States in January 2019.
New subscribers will have to pay the updated monthly fees, while current subscribers will see the new prices over the next few weeks as they roll out with customer’s billing cycles. The new pricing for the standard plan is a $1 price increase (from $13 a month), while the new premium tier cost is a $2 increase (from $16 a month). The table below shows updated pricing.Netflix is introducing price hikes for its US subscribers today, increasing its standard plan to $14 a month and its premium tier to $18 a month. Price increases are effective immediately for new sign-ups and as of your next billing cycle for existing customers. In October 2020 Netflix increased the price of the Standard subscription by $1 per month and the Premium subscription by $2 per month. They do have a number of different plans available now based on your needs. Over the years, they’ve kept their pricing consistent and haven’t increased them much. Netflix has come from humble beginnings to become the streaming giant that most of us have used. Each plan has different features such as the number of simultaneous devices that can access the account and streaming quality (HD, 4K), which are summarized in the table below. Netflix now has 3 different plans for Canadians: Basic ($9.99/mo), Standard ($14.99/mo), and Premium ($18.99/mo). If you click-through, make a purchase or sign up for a service through our links, we may earn a commission or fee (at no cost to you). Disclosure: Tech Daily is reader-supported.