Well, well, well, Netflix has finally done it. The absolute streaming giant has raised its prices on standards and premium plans for customers in the United States. The standard plan, which was but $13 a month last year, has now become $14 per month. Its premium plan, on the other hand, has gotten a $2 increase in price at $18 per month. However, their basic plans remain to be at a steady $9 per month.
The new prices will be fully effective immediately for new members of the Netflix family while the current members will be notified of a price hike over the next couple of months.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said in a statement. “We’re updating our prices so that we can continue to offer more variety of TV shows and films.“
Netflix’s spokesperson also said that the streaming giant offers “a range of plans so that people can pick a price that works best for their budget.”
This comes from a place of no surprises. Netflix has already spent billions on its content––both for the development of Netflix Originals and acquiring new ones. The price hike is one of the most obvious ways to boost a company’s revenue.
According to Bernie McTernan, a senior analyst at Rosenblatt Securities:
“The price increase was a matter of when not if,” he told CNN Business.
“It shows they think people will be willing to pay more for the service as the pandemic disrupts content production thus making their vast library more valuable,” he continued.
After one of the company’s biggest breaks as the pandemic forced people to stay at home, the company has been slowing down as of recently with lower-than-expected profits. Not ideal for a company such as Netflix, is it?