Netflix has a consistent release schedule, which it is using to justify the price increase...
Digital Desk: Internationally, Netflix is raising its prices again. The streamer acknowledged in its Q3 earnings reports that, while the password-sharing crackdown initially irritated its users, it has paid off in the long term, with the company attracting 8.8 million new members. This raises the overall number of Netflix subscribers to 247.15 million, a significant increase from the 238 million reported in July.
As a result, starting today, the prices of Basic and Premium tier plans will be raised in the United States, the United Kingdom, and France. An earlier this month story hinted at an impending raise, albeit it was supposed to be implemented after the ongoing Hollywood actors' strike ended.
"As we deliver more value to our members, we occasionally ask them to pay a little bit more," Netflix stated in a prepared statement (via The Verge).
"Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it's much less than the average price of a single movie ticket." the statement added.
"We've seen this rising trend across other streaming companies as well, with Disney+ and Max (formerly HBO Max) upping their prices to reduce financial losses, and the former joining Netflix in banning account sharing among its customers by continually monitoring their activities. The most recent Netflix price rise came in January 2022, with a small increase of roughly $1 to $2 per month. This time, the price increase is comparable," it further added.
Netflix disabled access to the Basic ad-free membership plan in the United States and the United Kingdom in July, giving new budget-conscious subscribers the option of either sitting through advertising or jumping right onto the pricier $15.49 (about Rs. 1,290) ad-free plan.
However, in the United States, the ad-supported Basic plan — which is still available to existing users — has increased from $9.99 (about Rs. 832) to $11.99 (approximately Rs. 998).
Meanwhile, the Premium tier plan, which allows for 4K Ultra HD images on up to four devices at once, is increasing from $19.99 (about Rs. 1,664) to $22.99 (approximately Rs. 1,914). Prices for the Standard plan remain consistent throughout all areas.
During the earnings call, Netflix stated that the Basic plan would be discontinued in Germany, Spain, Australia, Mexico, and Japan the following week.
For now, Netflix has a regular slate of material planned for release, which it is using to justify the price increase, citing the One Piece live-action series as a big contributor to subscriber growth.
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