Netflix has officially confirmed an increase in pricing for some of its subscription plans in the U.S., U.K., and France. In the United States, the Premium plan will now cost $22.99 per month, a significant jump from its previous $19.99 monthly fee. Concurrently, the Basic plan, which is being gradually discontinued and is no longer open to new members, will now set back existing subscribers $11.99 per month, up from its former $9.99 monthly cost.
According to a report by Deadline, a shareholder letter accompanying the company’s quarterly earnings, Netflix indicated that despite having mostly paused on price increases while introducing its paid sharing features, its fundamental pricing strategy remains consistent. The company aims to offer a variety of pricing plans designed to accommodate a diverse set of customer needs. As the streaming giant aims to provide more value to its users, it finds it reasonable to occasionally adjust prices upwards.
Interestingly, not all plans are experiencing price changes. The U.S. versions of Netflix with advertisements priced at $6.99, and the Standard plan at $15.49, are not subject to any price adjustment and will remain the same. Likewise, in the U.K. and France, the prices for the Ads and Standard plans will remain unaltered.
For those subscribing to Netflix in the U.K. and France, the newly adjusted prices for the Ads plan, Basic, Standard, and Premium are £4.99, £7.99, £10.99, and £17.99 respectively, in the U.K., and 5.99€, 10.99€, 13.49€, and 19.99€ in France.
The letter also shed light on the company’s competitive edge. Netflix highlights that their starting price of $6.99 per month in the United States is significantly lower than the average cost of a single movie ticket. This is presented as evidence of the platform’s affordability despite the latest price adjustments.
Netflix attributed the recent price adjustments to its “increased sophistication around pricing and plans,” which it sees as a crucial element in its approach to monetizing its services. Besides price adjustments, the company is also focusing on paid password sharing and advertising as additional revenue streams. The shareholder letter expressed that the paid sharing feature has already been introduced in all relevant markets and is exceeding expectations. Moreover, the company stated that it is highly optimistic about its new advertising tier.
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