Netflix Announces New Price Hikes for Multiple Plans

Some Netflix subscribers are going to have to start preparing for a bigger bill going forward, as the streaming giant has announced another round of price hikes. On Wednesday, Netflix revealed that subscribers of certain plans in the United States, the U.K., and France will be seeing a new round of price increases. These increases will affect anyone subscribing to the “Basic” or “Premium” plans of the service.

The “Basic” plan, which is no longer available to new members, is the lowest ad-free tier that Netflix offers. That subscription has cost folks in the States $9.99 each month, but will be increased to $11.99 going forward. An even steeper hike is coming to the “Premium” plan. That tier, which allows users to stream in Ultra HD and download on up to six devices, is going up from $19.99 per month to $22.99 per month.

The good news is that, while those two plans are getting price increases, the other two plans are currently set to remain at the same subscription fee. The ad-supported plan will continue to cost $6.99 each month, while the “Standard” plan will be staying at $15.49 per month.

In the U.K. and France, the “Basic” plan is going up to 7.99 pounds and 10.99 euros per month, respectively, while the “Premium” is going up to 17.99 pounds and 19.99 euros.

“While we mostly paused price increases as we rolled out our paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said in Wednesday’s third-quarter shareholder letter.

These price increases come in the wake of Netflix rolling out stricter rules about password sharing, which limit the number of households where an account can be used. Members can add another household to their account for $7.99 each month. According to Netflix’s quarterly report, that initiative has resulted in even fewer cancellations than expected.

“The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention,” the letter explained. “As a result, we’re revenue positive in every region when accounting for additional spinoff accounts and extra members, churn and changes to our plan mix.”

Are you disappointed to see Netflix increasing its prices? Will you be keeping your account? Let us know in the comments!