Netflix has announced it will raise the pricing on two of its packages again. The streamer’s most popular plan, the two-stream HD content plan, is going from $12.99 to $13.99 per month. The Premium, four-stream plan with 4K Ultra HD quality, is going from $15.99 to $17.99 per month. However, its basic plan for one non-HD stream is staying at $8.99 per month.
The price change for new U.S. subscribers went into effect on October 29th. According to Variety, who spoke to a Netflix representative, current subscribers will see the price uptick over the next few months. They will be notified via e-mail and receive a notification on the app 30 days before the price change. The timing of the increase will be based on each member’s billing cycle.
We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Netflix previously raised the pricing of its two-stream plan at the beginning of 2019, from $10.99 to $12.99. And while some members canceled their memberships, Netflix’s financial growth for that year increased by 28%. As Variety states, news of this next price increase brought about a 4.5% increase in the company’s shares.
Earlier this month, Netflix also increased the price of the two-stream plan in Canada from $14 to $15. COO and chief product officer Greg Peters declined to comment on when Netflix chooses to increase prices in various markets. But if you’re wondering if there’s a statistical algorithm in place, there isn’t.
We do an assessment: Do we believe that we’re really delivering more value to members? A North Star we hold close to our heart in this whole process is we think that we are just an incredible entertainment value. And we very much want to remain an incredible value as we continue to improve the service and grow.”
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