Netflix has raised the price for its three plans by $1-2 a month, effective immediately. The rate hike is now only for new customers in the U.S., but existing subscribers will get the same price increases in the near future.
“Current members will receive an email notification 30 days before their price changes, unless they change their plan,” Netflix said in a statement.
In the United States, the streaming giant’s basic plan, which does not include high-def programming, rises from $8.99 a month to $9.99 a month. The standard plan, which includes HD, and streaming on two screens at the same time, increases from $13.99 a month to $15.49 a month. The premium plan, which includes HD and 4K titles, and simultaneous streaming on four screens, goes from $17.99 a month to $19.99 a month.
This is the first price increase from Netflix since October 2020. The company said the rate hikes are necessary now to continue funding original programming which has become even more important due to growing competition from well-heeled rivals such as Disney+ and HBO Max.
However, with more quality streaming choices than ever, Netflix risks losing customers who could switch to less expensive services. Disney+ costs $7.99 a month while HBO Max starts at $9.99 a month with an ads-included version. The ads-free HBO Max is $14.99 a month. (HBO Max is now running a limited time promotion that cuts each price by 20 percent. See this article for details.)
Netflix’s Canadian subscribers will also see rate increases although the basic plan there will stay the same. The standard plan will rise to 16.49 a month while the premium package goes to 20.99 a month.
In October 2020, Netflix raised the price of its standard plan in the U.S. from $12.99 a month to $13.99 a month, and its premium plan from $15.99 a month to $17.99 a month. The basic plan stayed the same then.
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