Netflix Raises Subscription Plan Prices Once More: Full Details

Technology

Netflix Raises Basic and Premium Plan Prices for the Third Time in 2023 in the US, UK, and France, Focusing on Expanding Content Library and Launching “Paid Sharing” Program to Attract More Subscribers

Netflix is implementing another round of price increases, as announced in its third-quarter earnings report. The Basic plan’s cost is rising from $9.99 to $11.99 per month, and the Premium plan is going up from $19.99 to $22.99 per month. However, the prices for the $6.99 ad-supported plan and the $15.49 Standard tier will remain unchanged immediately.

This price adjustment is affecting the US, UK, and France markets. In the UK and France, the Basic and Premium plan costs are also increasing. In the UK, the Basic and Premium plans will be priced at £7.99 and £17.99, respectively, while customers in France will see the Basic plan rise to 10.99€, and the Premium plan will cost 19.99€.

Netflix justifies these price hikes by stating that they will enable the company to expand its content library, collaborate with top creators, invest more in TV shows, movies, and games, and build a more valuable business. It’s noteworthy that Netflix previously raised its prices in January 2022 and discontinued its $9.99 Basic ad-free plan for new and returning users in July, requiring them to pay more to eliminate ads.

Notably, Netflix has exempted India from this price increase strategy, as it aims to bolster its user base in this price-sensitive and potentially vast market.

Meanwhile, Netflix is globally cracking down on password sharing, necessitating each household to have its individual plan. Reports indicate that this action is contributing to an increase in the subscriber count. Simultaneously, Netflix has officially introduced its “paid sharing” program in all regions where it operates.

Netflix’s paid sharing program permits users to include up to two additional members in their account for an extra monthly fee, offering a more cost-effective alternative to a separate subscription. This change has resulted in fewer customer cancellations related to password sharing than anticipated. In fact, many individuals who previously borrowed passwords have transitioned into full-paying subscribers. This development is positive for Netflix, which faces escalating competition from other streaming services like Disney+, HBO Max, and Amazon Prime Video. By curbing password sharing, Netflix can bolster its revenue and continue investing in new content.

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