Netflix is reportedly planning to raise the basic subscription fee in Japan by as much as 13%, following a trend that has seen the SVOD behemoth raise monthly prices in the United States, Canada and the United Kingdom. Japan’s Nikkei 225 Stock Average disclosed the news, which helped send Netflix shares up more than 2% in midday trading.
The increase, which does not affect the premium-priced plan, would see the basic plan price increase to ¥990/month ($9.39) from ¥880/month ($8.34).
Netflix launched service in Japan — then the world’s No. 2 home entertainment market — six years ago in 2015, largely through the efforts of Greg Peters, current COO/chief product officer, who back then was GM of Netflix Japan.
Peters, on the October fiscal call, said Netflix increased spending of more than $15 billion annually on original productions justified subscription price hikes.
“We feel like there is that opportunity to occasionally go back and ask. for members where we’ve delivered that extra value in those countries to pay a little more,” Peters said.
Netflix added 1.99 million subs in the Asia Pacific region in the most-recent fiscal period (ended Dec. 31, 2020). The region totaled 25.5 million subs, including more than 3 million in Japan. The region is Netflix’s third-lowest generating revenue per subscriber at $9.32, ahead of Latin America at $7.12 per sub. The North American region leads Netflix with $13.51 in monthly revenue per sub.
“With its rich culture and celebrated creative traditions, Japan is a critical component of our plan to connect people around the world to stories they love,” co-founder/co-CEO Reed Hastings said in 2015 at the Japan launch.