Netflix is hiking its prices on standard and premium plans for its US-based subscribers. The streaming media company raised its standard plan by $1 and premium by $2. However, the price increment is only restricted to the United States. While the basic plans remain constant at $9 per month, the standard plan has increased to $14 compared to the previous $13. On the other hand, and premium subscription has gone up to $18 from the i$16 monthly. The new prices take effect immediately for new subscribers while current subscribers will see the hiked prices roll out in their upcoming bills.
Netflix had a similar operation in January 2019 where the standard and premium rates hiked by $2 and the basic subscription rose by $1. According to The Verge, while the current hike was quite unappreciated by most subscribers, it does hike does not come as a huge surprise. Some people in the know had already predicted a possible fee increment for some plans in Canada.
Netflix has a wide range of subscription plans for customers to choose from based on their pocket power. Furthermore, these plans are rolled out on a country-by-county basis. To that end a fee increment in the US does not necessarily imply that they would hike on a worldwide scale. Americans are currently spoilt for choice with a huge array of streaming options. Some of the top choices include: Hulu, Disney+, Peacock, YouTube TV, and HBO Max. According to a Netflix spokesperson, they are updating their fees so as to increase the diversity of TV shows and films.
Netflix remains steadfast in channeling much of their funding into content and product feature. Their annual budget continues to increase with each passing year for the past seven years and this year alone, they have an eye-popping $18.5 billion budget.
In a recent earning call earlier this month, the chief operating officer and the chief product officer pointed out that Netflix will remain steadfast towards investing in content and technology. Once in a while, they will go back to their customers and request a little more funding to keep their investment and value creation on track. It is also expected that some of the customers will opt to seek cheaper alternatives in other streaming options. Nonetheless, the streamline giants are focused on reaching their ultimate goal. They are working towards growing into an incredible venue that leaves no chance for second thoughts once a customer hits the sign in button.