After introducing extra fees to share accounts earlier this year, Netflix is upping the monthly cost for two subscription plans in the US, UK and France. The company announced the price hikes in a letter to shareholders on Wednesday, saying customers in these regions can expect to see the price increases Wednesday, with new subscription changes rolling out to subscribers in Germany, Spain, Japan, Mexico, Australia and Brazil next week.
Starting Wednesday, the basic plan will go up to $12 per month, but it's unclear if there will be any changes to how many simultaneous streams come with the subscription or if extra members are allowed. The basic plan is no longer available for new Netflix subscribers. Premium will now cost $23 a month, and the price of the platform's ad-supported ($7) and standard plans ($15.50 per month) will not change. While Netflix hasn't raised subscription rates since January 2022, it eliminated the basic $10 plan this past summer and charges an extra $8 per person if you share your membership with someone outside your household.
The news comes after several of its streaming service rivals increased pricing this year. Competitors such as Disney Plus, Hulu, Peaco*ck, Discovery Plus and Paramount Plus have all implemented price hikes within the last three months. Compared to Disney Plus and Hulu, Netflix's new pricing plan will be similar.
Notably, Netflix is ratcheting up its ambitions beyond video streaming with a slate of new ventures. The company launched games on its platform in 2021 for mobile phones and recently began testing the feature for TVs. Its lineup of video games continues to expand each month, with a handful of releases that are based on Netflix properties. Games are included with all memberships at no extra charge.
The streamer is also taking baby steps when it comes to live sports programming with its inaugural Netflix Cup. In November, viewers can stream the live golf event that combines Formula 1 and PGA athletes in a contest for the top title.
As a seasoned expert and enthusiast in the field of streaming services, particularly focusing on industry trends and pricing strategies, I bring forth a wealth of knowledge to delve into the recent developments regarding Netflix's subscription plan adjustments. My expertise is rooted in a comprehensive understanding of the streaming landscape, evidenced by a track record of analyses and insights shared across various platforms.
Now, turning to the article about Netflix's subscription price hikes, let's break down the key concepts involved:
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Netflix Subscription Plan Changes:
- The article discusses Netflix's decision to increase the monthly cost for two subscription plans in the US, UK, and France.
- Effective immediately, the basic plan sees a rise to $12 per month, while the premium plan now costs $23 a month.
- Notably, the basic plan is no longer available for new subscribers.
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Global Rollout of Changes:
- The price adjustments are initially implemented in the US, UK, and France, with a subsequent rollout to subscribers in Germany, Spain, Japan, Mexico, Australia, and Brazil the following week.
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Previous Fee Changes:
- Earlier in the year, Netflix introduced extra fees for sharing accounts, and during the summer, the basic $10 plan was eliminated. There is now an additional $8 charge per person for sharing the membership with individuals outside one's household.
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Comparison with Competitors:
- The article highlights that Netflix's price hikes follow similar moves by its competitors, including Disney Plus, Hulu, Peaco*ck, Discovery Plus, and Paramount Plus, all of which have implemented price increases in the past three months.
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Diversification of Netflix's Offerings:
- Beyond video streaming, Netflix is expanding its ventures, including entering the gaming industry. The platform launched games on mobile phones in 2021, and it is testing this feature for TVs. Notably, games are included with all Netflix memberships at no extra charge.
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Live Sports Programming:
- Netflix is making strides in live sports programming with the introduction of the Netflix Cup. In November, viewers can stream a live golf event that combines Formula 1 and PGA athletes in competition for the top title.
In summary, Netflix's recent subscription plan adjustments reflect a dynamic industry landscape, with the company adapting its pricing strategy amid broader changes in the streaming market. Additionally, Netflix's foray into gaming and live sports programming signifies its evolving ambitions beyond traditional video streaming.
FAQs
Last October, Netflix increased the price of the Basic plan from $9.99 to $11.99 per month in the U.S., and also hiked prices of the tier in the U.K. and France. Netflix hasn't announced specific plans to hike subscription prices in 2024, but execs have said rate increases are on the table.
Why is Netflix increasing prices again? ›
As we continue to add more TV shows and movies and introduce new product features, our plans and prices may change. We also may adjust plans and pricing to respond to local market changes, such as changes to local taxes or inflation.
How much is Netflix per month in 2024? ›
Netflix Prices in 2024
Additional tiers include $15.49 for Standard service, which includes 2 screens, and $22.99 for Premium, which includes 4 screens as well as upgraded HDR/4K resolution.
How much is Netflix a month without ads? ›
For $15.49 a month ($3.50 more per month than the Basic tier), users can select the “Standard” plan, which includes the same as the “Standard with ads” plan, minus the ads.
Did Netflix lose subscribers after pricing change? ›
Netflix revealed that it had lost 1 million members for the first time in two decades; it claimed that it was a result of rising inflation and increasing competition in the streaming market. Price increases are also the reason behind the loss of Netflix subscribers.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to sign up for their own account to watch Netflix. You can manage who uses your account by setting a Netflix Household.
Why am I paying so much for Netflix? ›
There are a few reasons you may be seeing a charge that is more than you expected. Taxes - Depending on where you live, you may be charged taxes in addition to your subscription price. Fees - In some countries, card companies may charge an extra fee for cross-border transactions.
Is it cheaper to pay yearly for Netflix? ›
Netflix offers only monthly subscriptions; there's no option to pay yearly for a discount.
How to get Netflix cheaper? ›
Basic and Premium plan Netflix subscribers will now pay a little more each month for the streaming service. To help save on this cost, get a credit card that rewards streaming purchases, switch your phone plan to T-Mobile or take a pause on your subscription.
What is the best Netflix package? ›
If you're on a shared Netflix account with people in one household, chances are it's a Premium one ($23 a month) -- if you're actually splitting it between four people, that's about $6 a month each, and a still a value for all of the original content available, including some in 4K Ultra HD.
Netflix does not offer free trials, but you have the freedom to change your plan or cancel online at any time if you decide Netflix isn't for you. There are no contracts, no cancellation fees, and no commitments.
Can I see Netflix without a subscription? ›
By heading to netflix.com/watch-free, people can take in a handful of popular titles -- including Stranger Things, Bird Box, Murder Mystery, When They See Us and others -- for free without signing up for a Netflix account. For TV series, you only get the first episode, but movies are available in full.
Are people cancelling their Netflix subscriptions? ›
About one-quarter of U.S. subscribers to major streaming services—a group that includes Apple TV+, Discovery+, Disney+, Hulu, Max, Netflix, Paramount+, Peaco*ck and Starz—have canceled at least three of them over the past two years, according to November data from subscription-analytics provider Antenna.
Why does Netflix keep increasing prices? ›
Hollywood studios continue to demand more from streaming services for their TV shows and movies, as production costs rise. Meanwhile, consumer demand for streaming services has slowed dramatically since the pandemic, cutting into streamers' revenue growth. Raising prices is one way to solve that issue.
Is Netflix losing money after password sharing? ›
Netflix says its profits have soared in the first three months of this year, partly thanks to a crackdown on password sharing.
What is the difference between Netflix standard and premium? ›
The Standard with ads plan is suitable for occasional viewers, while the Standard plan is ad-free and allows for streaming on multiple devices. The Premium plan is recommended for large families and offers 4K streaming and downloads on up to six devices.
How much is Netflix charging for additional users? ›
Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy. Current customers can buy an extra membership to their main subscription for an additional $7.99 per month.
Why is premium Netflix so expensive? ›
Hollywood studios continue to demand more from streaming services for their TV shows and movies, as production costs rise. Meanwhile, consumer demand for streaming services has slowed dramatically since the pandemic, cutting into streamers' revenue growth. Raising prices is one way to solve that issue.
