Netflix now costs $1-2 dollars more a month, with changes rolling out for existing subscribers over the coming weeks.
In a sort of reverse-Halloween-special, Netflix is increasing the cost of two of its monthly subscriptions. The standard plan goes up to $14 a month ($1 up from its previous $13) and the premium tier jumps from $16 to $18. The basic plan remains unchanged at $9.
The changes are already here. New customers buy in at the new prices, and existing subscribers will see updated pricing in the next billing cycle. If you already pay for a plan that's changing, keep an eye on your email for a 30-day advisory for the price change.
Pricing models, image courtesy Netflix.com.
“As always, we offer a range of plans so that people can pick a price that works best for their budget,” says a Netflix spokesperson.
For seven years, Netflix has increased its annual budget for creating new content and features. In 2020, it's estimated they've allocated $18.5 billion for new shows, movies, and tech. Greg Peters, Netflix’s chief operating officer and chief product officer, explained that as Netflix invests more in new content (like the Enola Holmes movie or The Haunting of Bly Manor series), the company will “occasionally go back and ask [customers] to pay a little bit more to keep that virtuous cycle of investment and value creation going.”
The move shows confidence that customers use Netflix and will shell out a little more, even as Netflix competitors seem to swell. There's Hulu, Amazon Prime Video, YouTube, Disney+, Twitch, TikTok, Quibi . . . Just kidding—nobody cared about Quibi so it shut down. Even still, the modern media landscape of subscription services is getting crowded, and consumers only have so much in their entertainment budget (and their time.)
Will this price hike help Netflix win the streaming wars? Does it bug you, or does Netflix still feel like a deal? Comment with your thoughts!