October 29, 2020
Netflix Oct. 29 has quietly begun implementing price hikes across two of its three subscription plans. The standard plan increases $1 to $14 per month, while the premium plan increases $2 to $18 monthly. The $9 basic plan remains the same. The hikes affect all new subscribers immediately, while existing subs will be phased in over the coming weeks before their billing cycle. Netflix last raised U.S. prices in January 2019.
The SVOD pioneer, which dabbles in pricing at different times in global markets, signaled a price hike during its most recent fiscal call when Greg Peters, chief product officer, said that with Netflix increasing original content production, subscribers could expect to see a price hike to pay for it.
“You heard from Ted [Sarandos] the number of original productions we’re doing, increasing even under these [pandemic] conditions … if we do that, we feel like there is that opportunity to occasionally go back and ask for members where we’ve delivered that extra value to pay a little more,” Peters said on Oct. 20.
A Netflix spokesperson said the U.S. price hike does not suggest a similar global price hike. Netflix ended Q3 with 195 million subscribers. The news sent shares down slightly in after-market trading.