Netflix is reportedly raising the cost of two of its streaming plans for US members beginning next month. Here is everything you need to know.
As first reported by Mashable, Netflix will be raising its Standard tier to $10.99 per month, up from $9.99. The Standard tier allows subscribers to watch on two screens at once. The company’s Premium tier which allows users to watch on up to four screens at once with Ultra HD viewing quality will be raised to $13.99 per month, up from $11.99. The Basic tier which only allows watching on one screen at a time will remain priced at $7.99 per month. Back in 2015, Netflix increased the price of its Standard plan, as it was the most popular choice for customers at the time. Earlier this summer, Canadian subscribers saw the Basic and Standard tier go up $1.00 per month to $8.99 and $9.99 respectively.
Needless to say, the price increase is not that big of a surprise. The streaming cost of the Premium plan is still below Hulu’s entry cost of $14.99 per month, and as Netflix begins to add more exclusive content the cost is ultimately going to be priced a tad bit higher, as we see with the latest price increase. Ted Sarandos, Netflix’s chief content officer, has already said that the company will spend around $7 billon on content in 2018, up $1 billion from this year. One of the ways they can achieve that is by increasing prices slightly.
Now, the price increase probably won’t phase a large portion of Netflix’s 100 Million subscribers that will see the price hike, as many have become attached to the service. It would not surprise me if we continued to see price increases as competition for subscribers, and original content takes off between streaming services. Netflix will notify all customers affected by the price hike on October 19, 2017.
What are your thoughts on the price increase? Are you willing to pay more each month, or are you looking elsewhere? Please let myself and other readers know below!