The Netflix standard and premium plans are getting a price increase. Standard is increasing to US$13/month while premium will cost US$18/month. The basic plan remains US$9 (via The Verge).
Netflix Price Increases
Current subscribers will see the increase over the next few weeks as billing cycles refresh, while new subscribers get the higher prices immediately. The last time Netflix prices increased was in January 2019.
The company has more competitors than ever, like Hulu, Apple TV+, HBO Max, Disney+, YouTube, and Peacock. A spokesperson said prices are increasing so the company “can continue to offer more variety of TV shows and films.”
Netflix’s content budget has risen every year as it works to create more original content, spending US$18.5 billion this year. CEO Reed Hastings notes that while customer churn happens, the company wants to create on as many hits as popular to keep subscribers.
Netflix is also quick to drop shows that don’t meet expected demand, canceling many shows after season two or three.