Netflix Hikes Subscription Prices Despite Strong Q3 Performance (Image: Pixabay)
Netflix users need to pay extra for their subscription plans starting next time, as the streaming giant announced a price hike. Netflix informed that the prices of the Basic and Premium tier plans were increased in the US, and the hike is effective October 19. The platform also increased its prices for subscribers in the UK and France.
This price hike comes despite the success of the company”s recent crackdown on password sharing. Netflix saw significant growth in its Q3 earnings. They have added 8.8 million new subscribers and marked an annual revenue increase to $8.5 billion, up 8% from the previous year. Now, the overall subscriber base of Netflix has reached 247.2 million. Earlier, in its July report, Netflix reported 238 million subscribers. As per the new price hike, the Basic plan will now cost $11.99 per month in the US, and the price of the Premium plan will be $22.99 per month. It is to be noted that before this hike, the price of the Basic plan was $9.99 per month, and the Premium plan users paid $19.99 per month.
“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” said Ted Sarandos, Co-CEO of Netflix, in his letter to the shareholders. “Our starting price is extremely competitive with other streamers, and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket,” Netflix”s Co-CEO added.
