Netflix welcomes January's second half with a price increase for all their US subscribers.
Netflix recently announced that they are increasing their prices on all of the streaming plans they offer. Changes will be as follows.
The cheapest basic plan that used to be at $7.99 will now be at $8.99. The premium plan which is the top-tier plan formerly at $13.99 will now charge $15.99 per month. The top-tier plan allows for simultaneous high definition streaming on four screens.
Subscribers of the most popular standard plan which allows high definition streaming for two devices at the same paid at $10.99 monthly. Standard subscribers will have to pay $12.99 a month from now on.
This increase will be affecting all US subscribers from 13 percent up to 18 percent. This is said to be Netflix' highest increase percentage so far since their last price hike in 2017. The 2017 increase, however, was implemented on the standard and the premium plan subscribers.
Netflix recently released a statement saying that they change pricing from time to time as they continue to invest in great entertainment and to improve the overall Netflix experience to their subscribers. The video streaming pioneer has launched 12 years ago.
Netflix is implementing the price increase immediately to their new subscribers. Old subscribers, on the other hand, will see the hike reflected on their monthly bill three months from now.
The Netflix price hike will affect the entire US subscriber. A few Latin American countries paying in US dollars, as well as the Caribbean, will also see the increase on their monthly bills. Brazil and Mexico however, remain at their regular rates, the CNBC hinted.
With the ongoing threats and pressure from streaming competitors such as Disney, Apple, and Amazon, Netflix price increase is an answer to help them maintain their standing. To keep pace with the tight streaming competition, the streaming pioneer needs to invest in original shows which really cost a lot and results to the heavy debts.
Netflix caters its streaming service to a huge amount of subscribers across the globe. There are more than 58 million subscribers in the US while there are over 78 million subscribers from other countries. The above figures were gathered during the last quarter and subscribers are continuing to increase even more.
Some of the Netflix originals to watch are Stranger Things, Orange is the New Black and House of Cards. The company also brought home Golden Globe Awards for The Bodyguard and The Kominsky Method, according to Engadget.
