Netflix & chilling and binging just got a tad bit more expensive after the streaming service just raised the price of its most popular plan.
Thursday (Oct.29), Netflix announced the price hikes for US subscribers bumping the price of its standard plan from $13 to $14, a $1 increase. Those who enjoy the premium tier also saw an increase, with their monthly subscriptions jumping from $16 to $18. If you happen to enjoy using Netflix’s basic plan, your fee remains $8, so you can breathe a sigh of relief. New subscribers will be the first to experience the new pricing while current customer’s subscriptions will be adjusted over the next few weeks.
Netflix’s decision comes as no surprise to industry insiders, being that there are so many more options for customers to choose from while we are supposedly hunkering down at home. Netflix used to have to only worry about Hulu as it’s only direct competition, but now with other streaming services like HBO Max, Disney Plus, and Peacock, Netflix’s reign at the top isn’t as safe as it used to be.
The announcement comes as Netflix is looking to invest more in its slate of original content and other product features. With the new players on the block in the streaming game, Netflix has to continue to step its game up in the originals department and to do so, they have to increase its annual content budget, which the company has done for the past seven years. So again, a price hike was expected if you want to see shows like Castlevania, The Witcher, or the recently announced Assassin’s Creed come to Netflix.
Whether the price hike will cause some customers to cancel their subscriptions, co-CEO Reed Hastings isn’t particularly bothered by the prospect of that happening. During the company’s second-quarter earnings call in July, he told analysts that customers will leave to try other services. Still, the goal is to “have so many hits that you know when you come to Netflix you can just go from hit to hit to hit and never have to think about any of those other services.”
We have a feeling Netflix will continue to flourish despite the price hike.
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