Netflix have hiked up their prices – here’s how you’ll be affected
With their stocks hitting an all-time high (jumping more than 3%) and their exceptional creative output becoming ever-more popular, a rise in Netflix’s subscription prices was always likely to be on the cards.
Yesterday, Netflix made the official announcement of their rise in prices, marking their first price change in two years. The change only affects the two higher plans – standard, which is the most popular plan, and premium.
If you’re UK-based, you’ll see the standard plan rise by 50p, from £7.49 to £7.99 per month. The premium plan will rise by a full pound, from £8.99 to £9.99. The basic plan will remain at £5.99 per month.
If you’re in the US, the standard plan will rise from $9.99 to $10.99. The price for the premium plan will rise from $11.99 to $13.99. The basic package will stay at $7.99.
Netflix in Europe
If you’re in the rest of Europe (non-UK), you’ll see the standard plan rise by one Euro and the premium plan rise by two Euros, with the basic package remaining the same.
What they’ve said
Netflix have stated:
“Netflix’s plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experiences to help members find something great to watch even faster.”
They’ll give customers 30 days notice before the changes take place, the timing of which will depend on their billing cycle.
What we think
It’s a sly move – Netflix are pushing up the prices for those who can clearly afford it, while keeping the basic plan the same, to make certain that no viewers leave due to being unable to afford hiked-up pricing.
Last year, Netflix changed the UK subscription packages, which meant UK viewers had to move up to the standard package if they wanted to retain HD-quality streaming. This is this kind of thing that deters subscribers, especially with competing titans like Amazon Prime offering similar (and arguably superior) streaming at lower costs.
The recent price changes are a byproduct of their growth – gathering and creating a huge catalogue of films and shows costs a lot of money. But it’s a slippery road – sometimes the big guns get too cocky on pricing and it ruins the experience for casual viewers (this time, the basic package hasn’t gone up, but it’s sure to in the future).
It reminds me of the Sixers trying to monetise the OASIS in Ernest Cline’s wonderful Ready Player One. Netflix has never been free, but it should always strive to remain accessible to the everyday viewer. Around 5.7 million people subscribe to Netflix in the UK.
Image credits: Netflix