Netflix is raising the prices for 2 of its subscription plans for the second time since 2019. The premium plan has gone up an additional $2 making the price $17.99 while the standard plan has increased by $1 and is now at $13.99.
What We Know:
- As of October 29, Netflix raised prices for 2 of their plans. The basic plan remains at $9 per month for 1 screen. There was an increase in subscribers due to the pandemic this year. At least 26 million paid subscribers joined earlier this year.
- A spokesperson for Netflix says “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 line up”. According to Vulture, Netflix is expecting more Netflix originals in 2021 as well. Netflix offers plans for everyone so that people are able to choose a plan that works with their budget. When these people subscribe to Netflix, they are usually subscribing to other streaming services as well.
- Current members will be notified of this change with the next 30 days before their next billing cycle. New subscribers will see this price change effective immediately.
- It’s been almost two years since the last price increase. Since this increase was announced, the shares for Netflix were up about 4%. Twitter users have reacted to the increase in prices.
I don’t understand the stock market, part 867: Netflix gained 9b in market share today after announcing a price increase. In September 2011, they announced a price increase and lost 3b in market share.
— Pat East (@pateast) October 29, 2020
- The public is hoping that these high prices are worth it with Netflix’s original content increasing within the next year. In addition to the price increase, season 2 of The Mandalorian on Disney+ started streaming this morning as well. It wouldn’t be a surprise if other streaming services, such as HBO Max and Peacock also raised their prices by next year as well.
The price increase in Netflix is expected to hopefully bring in more subscribers in addition to more revenue for the company.
