Netflix Is Raising Prices By $1-$2 A Month

Netflix Is Raising Prices By $1-$2 A Month

Netflix stated tonight that all of its subscription packages will be raised by $1 to $2 per month. The streamer’s last price increase, in October of 2020, was almost a year and a half ago.

The increases, which will “roll out” for existing members over the next few months as part of the company’s continued efforts to avoid getting torched and pitchforked every time they do this, are as follows: Premium customers will be charged $20 per month instead of $18 for 4K content and four screens at once. Members of the standard package (HD content, 2 screens) will see a buck fifty increase in price, from $14 to $15.50. Basic users who don’t get HD content will now have to pay $10 per month to acquire it.

The price hikes come at an inexplicably strange time for the service; which is currently at its highest point in history while yet facing tougher competition than it has ever faced. On the one hand, Netflix’s subscriber base is about as excellent as it could possibly be right now; with the service currently serving over 200 million customers worldwide, including 74 million in the United States and Canada; where the recent price hikes are intended.

The difficulty is that Netflix’s subscriber base is currently as high as it can be; when you’re already placed in the homes of virtually every internet-enabled home in a significant portion of the world; it’s difficult to carve out that pesky “growth” that shareholders demand.

Netflix is now on pace (or slightly ahead, for Premium) with HBO Max

As a result of the price hikes, Netflix is now on pace (or slightly ahead, for Premium) with HBO Max; which has traditionally been the most expensive plan in the game at $15 per month. (For comparison, Disney+ is still $8 a month, Paramount+ is $10 a month; Apple TV+ is $5, and Hulu recently raised its costs to $13 a month.) (To be clear, this is for the non-ad versions of the services.)

And the length of the preceding parenthesis indicates another problem Netflix is now dealing with: there are a lot of other firms out there right now trying to house its lunch. While having a multi-year head start in the streaming competition is undoubtedly advantageous; the firm must continue to invest as much money as possible in original content in order to keep subscribers satisfied. (Especially since studios that were once willing to licence their shows to the streamer for quick post-production revenues are now significantly more hesitant to provide a competitor with the content it requires.)

As a result of all of this, you may expect that small monthly cost to grow in size in the coming months.

Christy likes to use her great writing skills to curate articles on the Hollywood film industry, multichannel commerce, and online business strategies. She loves to share her ideas on Hollywood here at Clout News.

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