Netflix prices in the US are rising, a rise widely predicted by analysts and investors but still coming a little earlier than expected. New subscribers for the standard plan, Netflix’s most popular plan, pay an extra $ 1, or $ 14 a month from Thursday. The premium plan – unlock perks like 4K resolution, HDR image quality, and the ability to stream on four devices at once – is now $ 2 higher at $ 18 a month .
Netflix hasn’t changed its basic subscription, streamed at 480p DVD quality, and limited concurrent streams to a single device. It is still $ 9 a month.
Existing subscribers won’t see their bill increase immediately, but the break won’t last. Those who have subscribed to Netflix with either a standard or premium plan will receive an email and app notification 30 days prior to the price increase, based on their billing cycle. Anyone who previously didn’t subscribe to Netflix and does now must pay a higher price immediately.
The price increase, although may not be as welcome for some Netflix lovers, is expected to arrive soon. Netflix tapped higher prices in Canada earlier this month, a foreshadowing of the upcoming US price hike. Netflix also tends to increase prices about every two years higher. The last time Netflix raised prices in the US was, when the monthly costs of both standard and premium subscriptions go up by $ 2 and the base plan by $ 1.
Netflix’s latest rate hike comes after a slew of new streaming rivals launched from the media and tech giants last year, a period sometimes referred to as the streaming war. New competitors – including HBO Max, Peacock by NBCUniversal and– varies in price, from the free tiers to $ 15 a month.
However, the scale and frequency of new Netflix shows and movies are lower than that of new competitors, leading some analysts to consider Netflix too cheap.
“We understand people have more entertainment options than ever before, and we are committed to providing a better experience for our members,” said a Netflix spokesperson. “We’re updating our prices so we can continue to offer more TV shows and movies – in addition to our amazing fall lineup. As always, we offer a wide range of packages to people can choose the price that best suits their budget. “
Netflix has a $ 17 billion content budget. And even if the coronavirus disrupted film and television production around the world, Netflix hopes the show team released this year will continue as planned and the company is expected to release more movies and more program in 2021 than in 2020.
The pandemic also stimulated Netflix subscriber growth earlier this year, as the virus began to lock in many people around the world and lock people in their homes with sparse options for entertainment. That growth has slowed significantly over the past few months, as Netflix predicted, suspecting that those who will sign up later this year will simply sign up earlier during the lockout period.
Now, Netflix is betting that people will continue to flock to their service even if it costs an extra penny or two.