The previous streaming service raised prices in early 2019.
Netflix is increasing the prices of standard and premium plans.
Prices for Netflix’s HD subscription are rising from $ 12.99 per month to $ 13.99 per month, while its premium 4K subscription price will increase from $ 15.99 to $ 17.99. la, the company announced on Thursday. The streaming service’s base $ 8.99 plan, excluding HD streaming, is unaffected by the changes.
The last streaming service’s price hike was in January 2019.
Price changes take effect on Thursday for new subscribers. Existing Netflix customers will be notified via email and will also receive an in-app notification 30 days before they raise prices. The timing will be based on the specific subscriber̵7;s billing cycle and will roll out over the next two months.
“We understand people have more entertainment options than ever and we are committed to making the experience even better for our members,” a Netflix spokesperson said in a statement. “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 so people can choose a price that best suits their budget. “
Wall Street was happy to receive the news; Netflix shares rose about 5% in the hours after the news broke. The price changes were announced days after Netflix reported its third quarter earnings, where the company nearly missed out on expectations for new subscribers. In addition to mixed earnings in the third quarter, Netflix has outperformed many of its streaming competitors since the pandemic began to disrupt the entertainment industry, and the streaming service has seen an increase in subscribers big at the beginning of the year.
Time will tell how the price increase of the streaming service will impact the subscriber base. The streaming service blamed the 2019 price increase on slower member growth in the U.S. in its Q3 2019 earnings report.
Standard Netflix subscriptions cost more than standard subscriptions to most competitive streaming services in the market, with the notable exception being WarnerMedia’s HBO Max, which launched in May, costs 14.99 dollar per month and has been slow consumer adoption.