Netflix Raises Prices in US, UK, and France as Profits Soar
Netflix has announced price hikes in several major markets, including the US, UK, and France. The Premium plan in the US has increased from $19.99 to $22.99, while the Basic plan has gone up from $9.99 to $11.99. The Standard and Standard With Adverts plans remain unchanged at $15.49 and $6.99 respectively.
Compared to its rivals, Netflix’s Premium plan was already significantly more expensive. Disney Plus recently increased their prices to $14 without ads, Apple TV Plus is $6.99, Prime Video is $8.99, and Hulu (No Ads) is $17.99. However, many subscribers have Hulu bundled with Disney anyway.
In the UK, Netflix’s pricing remains the same for the Standard With Adverts plan at £4.99 per month and the Standard plan at £10.99 per month. The Basic plan, which is not available to new subscribers, has risen by £1 to £7.99, and the Premium plan is now £2 more expensive at £17.99 per month.
Netflix has also implemented stricter policies on account sharing in these markets. Additional users cannot be added to the Basic or Standard With Adverts plans, but one extra user can be added to the Standard plan for $7.99 / £4.99 per month, and two users can be added to the Premium plan for the same price per person.
Different pricing tiers offer varying features. Premium users enjoy Ultra HD 4K streaming, Spatial Audio, and the ability to stream to four devices simultaneously and download shows on six devices. The Standard plan offers Full HD with two simultaneous streams and downloads on two devices. The Standard With Adverts plan provides Full HD on two devices, but downloads are not supported.
In an earnings call, Netflix co-CEO Greg Peters indicated that there could be further price increases in the future. The company’s latest financial results show a revenue increase of 8% year on year to $8.5 billion, with profits up 20% to $1.6 billion. Netflix gained nearly 9 million new subscribers, surpassing industry predictions, and credited their crackdown on password sharing for driving the growth. Ad-funded memberships also saw a 70% increase, and approximately 30% of new subscriptions with the ad-funded option were for that service.
The earnings call also revealed insights into the recent restructuring and layoffs in Netflix’s animation division. The company announced a new multi-year deal with Skydance Animation, led by former Pixar boss John Lasseter, to produce animated movies for Netflix starting in 2024.
Some users may find it difficult to accept another price hike while considering Netflix’s robust financial performance. Netflix’s two CEOs earned over $100 million collectively last year, with co-CEO Greg Peters set to receive a compensation package of $34.65 million.
If users are already facing economic hardships and now have to pay more for their subscription, it’s understandable if they reconsider their Netflix subscription.
