Streaming giants Netflix are raising prices for their standard and premium tiers in the United States. The hike, which goes into effect this Thursday, sees the more popular standard plan increased to $14 from $13 a month and the premium go up from $16 to $18 monthly. The basic plan remains at $9, however.
New subscribers will be made to pay the new fees immediately while current users will see them reflected in upcoming bills.
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Netflix upped U.S prices back in January of 2019 and, according to The Verge, industry insiders had predicted another increase, with the company recently increasing fees for some plans in Canada.
Changes in the U.S, though, does not necessarily mean they will go up on a worldwide scale as they’re rolled out on a country-by-country basis.
The increase comes at a time where Americans are nearly embarrassed with streaming options. Among current choices are Hulu, Disney+, Peacock, YouTube TV, and HBO Max. According to a Netflix spokesman, prices are going up “so that we can continue to offer more variety of TV shows and films. As always we offer a range of plans so that people can pick a price that works best for their budget.”
Netflix is keen on pushing more funding into content and product features. The company’s annual content budget has increased with each passing year over the last seven years and they’re reported as having spent $18.5 billion this year alone.
The company held an earnings call earlier this month in which chief operating officer and chief product officer indicated Netflix will continue to invest in content, as well as technology, and is expected to “occasionally go back and ask [customers] to pay a little bit more to keep that virtuous cycle of investment and value creation going.”
Netflix has also accepted that they will lose customers because of the price increases, with persons likely to check out other streaming options. But the ultimate the goal is to turn Netflix into an avenue which will make it so that folks don’t even consider going anywhere else whenever they sign on.
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Source: The Verge
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