In a development that could impact your binge-watching routines, Netflix has revealed plans to raise subscription prices for specific tiers in the United States, United Kingdom, and France, commencing this week. In the United States, the basic subscription tier, which is no longer open to new members, will experience a price uptick from $9.99 to $11.99, while the premium tier, offering Ultra HD streaming and the ability to watch on six devices simultaneously, will surge from $19.99 to $22.99. However, the standard tier at $15.49 and the ad-supported tier at $6.99 will remain unaffected.
A representative from Netflix expressed, “Our strategy remains consistent—providing a spectrum of prices and plans to cater to a diverse range of needs, and as we offer increased value to our members, we periodically request a slight adjustment in pricing.”
Concurrently, in the United Kingdom and France, the basic subscription will now be priced at 7.99 pounds and 10.99 euros, respectively. The standard subscription will see an increase to 17.99 pounds and 19.99 euros in these nations. These adjustments align with Netflix’s ongoing expansion efforts, which include the introduction of a new advertising-based subscription tier that has garnered a substantial increase in membership.
Netflix Co-CEO Greg Peters underscored the company’s commitment to delivering high-quality content, stating, “We anticipate a gradual rise in new acquisitions and additions over the next several quarters.” These price hikes coincide with Netflix’s active measures to combat password sharing, aimed at converting freeloaders into paying subscribers.
Despite these changes, Netflix maintains an optimistic outlook regarding its future growth, targeting not only new customers but also former subscribers. In addition to raising subscription prices, Netflix has implemented a range of strategies to boost its revenue, including clamping down on password sharing and introducing an ad-supported streaming option. These endeavors have played a pivotal role in the company’s financial prosperity, as demonstrated by its third-quarter earnings report, where Netflix’s net profit saw a substantial increase of 20% to reach $1.68 billion. Alongside these impressive financial figures, Netflix expanded its subscriber base by 8.8 million users.