Netflix is raising rates on all of its plans in the US today. The company’s regular plan will increase from $14 to $15.50 per month, while the 4K plan will increase from $18 to $20 per month. The base package, which does not contain HD, will also be increased to $10 per month from $9. Prices in Canada are also increasing.
The pricing increases are effective immediately for new members. Existing users will see the adjustments “gradually,” with Netflix intending to notify them 30 days before the price increase takes effect.
In recent years, the cost of a Netflix subscription has risen considerably. The regular plan increased from $13 to $14 per month in late 2020, after earlier rising to $13 from $11 in 2019. Previously, Netflix hiked its fees in 2017 and 2015.
When Netflix announced its first large-scale price hike in 2014, it was so concerned about losing customers over a $1 per month rise that it allowed existing members to maintain their current subscription for two years. It hasn’t provided such a big benefit in previous years.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always, we offer a range of plans, so members can pick a price that works for their budget.”A Netflix spokesperson told Reuters.
The price increases come at a time when Netflix is both prosperous and facing challenges. The corporation already has many subscribers in the United States, and getting more is difficult, so price increases are an apparent way for it to generate more money. At the same time, Netflix is fighting for attention with many other significant streaming services, like Disney Plus and HBO Max, and it has been spending heavily on content to stay up.
Netflix isn’t the only provider that has recently raised its fees. In October, Hulu raised the price of its ad-supported and ad-free packages by $1 per month. Meanwhile, at its first-ever launch in Kenya, Netflix did something unexpected, the biggest OTP platform launched free android mobile plan in Kenya!