Netflix is set to increase prices in the UK and Ireland. The streamer announced the news today as things go up by £1 for the standard plan all the way to £10.99 in the Uk. While over in Ireland things get a €2 bump, which leaves prices at €14.99. On the lower end of things, the basic package also gets a one dollar bump. Now, that might not seem like a lot but viewers are keeping a close eye on this price creeping up. Other streamers are doing similar price adjustment. But, it remains to be seen how audiences will react to the slow upward trends. Analysts have forecasted that we could see a lot of these platforms implementing an "ad-supported" tier to retain a lot of the users who might be reticent to subscribe to a bunch of expensive subscriptions. Here's what a statement from the company says.
"We have always been focused on providing our members both quality and clear value for their membership," said a Netflix spokesperson in a statement. "Our updated prices reflect the investment we have made in our service and catalogue and will allow us to continue making the series, documentaries and films our members love as well as investing in talent and the creative industry. We offer a range of plans so members can choose a price that works best for them."
In a recent sit down with Morgan Stanley media analyst Ben Swinburne at the company's Technology, Media & Telecom Conference, Netflix executive Spencer Neumann joked about Disney adding an advertisement supported tier to their streaming service.
"I would love to get a show of hands of people who liked that decision by Disney, but I don't think I'll get it," Neumann joked. "It's not like we have religion against advertising, to be clear," he said according to Deadline.
"We lean into consumer experience, consumer choice, and what's great for our creators and storytellers." He mentioned before saying that they haven't shut down the idea of an ads tier. It just isn't heading that way for them in the near future. "That's not something that's in our plans right now. We have a great model in the subscription business, it scales globally."
Neumann also said, "The competitive intensity here is as strong or stronger than anywhere else in the world. And to be clear, competition has always been a part of our business. From the founding of Netflix, there have been competitors."
What do you think of Netflix raising prices? Let us know down in the comments!