![]() The market likes the latest changes from Netflix on plan pricing, the company’s stock is up over 6% at the time of writing. Facing a 3 monthly price increase, about two-thirds (62 percent) said they would stick with Netflix, but 22 percent said they would switch to a lower-priced plan and 16 percent said they would. 2019 marked the first time ever that Netflix had increased the price of its cheapest subscription option. The extra cash will help to pay for Netflix’s huge investment in original shows and films and finance the heavy debt it has assumed to ward off rivals such as Amazon, Disney and AT&T. Netflix is expected to use the extra revenue to help with its large debts that it has amassed as it tries to fight off the competition: Between the plan price hikes and cutting out Apple as a middle-man, Netflix could see a healthy boost to its revenue for 2019.įurther, these Netflix changes come as Apple is set to launch its own streaming service as soon as March with the original content it has been working on over the last months. We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience for the benefit of our members.Īll of this is more interesting in light of Netflix ending the option for customers to pay for the service through Apple/iTunes which means the company won’t have to pay Apple a 30% cut on subscriptions going forward. That’s a roughly 18% jump for the middle tier plan, and a 14% hike for the premium plan.Ī Netflix spokesperson shared the following statement with us about the news: It will retire the plan currently the least expensive ad-free option at Netflix for all subscribers in Canada and the U.K. Reported by CNBC, today’s news is that the same plans will now go from $10.99 to $12.99 and $13.99 to $15.99. This is due to the fact that even though there was a decrease in the percentage change in membership from 2.5 to 0.9, the price rise meant that there was a higher revenue earned per user. The middle tier went from $9.99 to $10.99, while the top tier jumped from $11.99 to $13.99, an increase of 10% and 16%, respectively. It is anticipated that the price rise would result in an increase in income for Netflix. In 2017, Netflix raised the prices on two of its three streaming plans. One imagines they waited until January just so no one can say they raised the price three. These changes come ahead of Apple launching its own video streaming service as soon as March. The last increase was in 2020 (standard went from 13 to 14) and before that 2019 (from 11 to 13). We saw the last price hike in October of 2017, and the latest jump is the biggest since the company’s launch. Netflix is a streaming service that offers a wide variety of award-winning TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices. The breakdown is as follows: Netflix Basic Plan8.99 (Was 7.99) Netflix Standard Plan12.99 (Was 10.99) Netflix. Netflix has announced that it will again be raising its prices for its streaming video plans. Under the new pricing plans, each sees an increase of 1 to 2 per month.
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