Netflix To Raise Prices By A Dollar For Most Popular Subscription Plan
(Photo via Getty Images)
Netflix is raising the price of its most popular plan by $1 starting in November. The plan, which allows for two people to watch content simultaneously on different devices, will go up to $10.99/month from the current price of $9.99/month. The next tier, which allows for streaming in Ultra HD and on up to four devices, will bump up to $13.99/month from the current price of $11.99/month. The basic plan, which only allows for a single stream at a time, will stay the same at $7.99/month.
The price changes come amidst Netflix's search for more award-worthy content to compete with Amazon and Hulu (The Hollywood Reporter notes Netflix plans to "spend $6 billion on content this year," so the search is definitely ramping up). The last time Netflix raised its prices was in 2015, and since then it has implemented a downloading feature and more interactive content, according to THR. The previous price hike had a gradual implementation as well, with pre-existing subscribers seeing no change in their price for two years. This upcoming price hike will affect users over a much shorter time span; all subscribers will pay the new rate by December.
In a statement, Netflix said:
"From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster."
Customers will be notified of the change on their next billing cycle, according to Mashable. Customers will be given at least 30 days notice of the price increase. The price increase still gives Netflix a competitive edge compared to other streaming platforms. Hulu's ad-free option costs $11.99/month and HBO Now costs $14.99/month.
Everyone will get an email on or after October 19, 30 days before their first billing cycle on the new price.— Netflix US (@netflix) October 5, 2017
Hulu recently became the first streaming platform to win an Emmy for Outstanding Drama, inevitably putting the pressure on Netflix and Amazon to ramp up their content search. Plus, with the loss of Disney content, Netflix has a void to fill. Better content needs higher budgets, and higher budgets mean a raise in subscription prices.