Netflix is raising subscription prices across all of its plans in its first significant price increase in more than a year.
The plans were revealed on Netflix’s help page on Thursday.
The ad-supported tier will rise by $1 per month to $8.99, with the Standard plan rising by $2 per month to $19.99, and the Premium plan rising by $2 per month to $26.99 per month. The company also raised the cost of the “Additional Member” fee by $1, to $6.99 for ad-supported plans and $9.99 for ad-free plans.
Netflix last raised prices early last year, with similar increases. Of course, the platform is significantly ramping up its content, not only in scripted entertainment, but also in live events and sports, not to mention other areas such as videos and games. The company says it will spend more than $20 billion on its entertainment offerings this year.
Netflix executives have long said they raise prices when they feel they offer enough value to justify it. The company has the lowest decline rate in the industry ever, confirming its leadership in this field.
But it’s also, frankly, pioneering the entire live streaming industry, with other services often following in its footsteps, despite the risk of greater disruption.
The move by Netflix also comes just weeks after it abandoned its pursuit of Warner Bros., choosing not to match a higher offer from Paramount Skydance. This deal could have been transformative for the company, but instead it will pump more money into its own business, and into its capital return programme.
“We will continue to do what we have done for more than 20 years as a public company: delight our members, grow our business profitably, and increase shareholder value over the long term,” said co-CEOs Ted Sarandos and Greg Peters in announcing their decision with Warner.
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