Effective immediately, the monthly cost of the Netflix basic plan is $11.99, up $2, and the premium plan is $22.99, up $3. The company also announced price increases in the U.K. and France. Monthly ad-supported and standard plans will remain the same, however, at $6.99 and $15.49, respectively.
The increase is Netflix’s second in less than two years. In January 2022, it raised monthly basic plan prices by $1, to $9.99; the standard plan rose by $2, to $15.49; and the premium plan increased by $2, to $19.99. Netflix only launched its ad-supported service in October 2022.
“As we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix said in its earnings report. “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.”
Netflix, which has been cracking down on password sharing, also said the number of paid subscribers increased by 8.8 million in the third quarter, versus 2.4 million in the same year-ago period. The company credited "the roll out of paid sharing, strong, steady programming and the ongoing expansion of streaming globally” for the subscriber increase.
Streaming prices on the rise
Netflix is the latest streamer to boost prices. Earlier this month, Warner Bros. Discovery hiked the price for its Discovery Plus ad-free monthly subscription in the U.S. to $8.99, from $6.99, but kept its monthly "ad-light" subscription fee unchanged at $4.99. Last month, Amazon Prime Video announced that its Prime Video streaming service will be getting ads in early 2024, although members can opt for an ad-free version for $2.99 per month.
In August, The Walt Disney Company announced a price hike for its monthly ad-free Disney Plus plan to $13.99, from $10.99, effective October 12. The cost of its monthly ad-free Hulu plan also rose to $17.99, from $14.99. Both versions of these services with ads remained unchanged at $7.99 per month.
News that Netflix was planning to raise rates was initially reported in an October 3 Wall Street Journal report citing sources familiar with the matter. The report said that the company was planning to wait until the actors' strike ended and that it was looking at several other markets worldwide. The actors' strike is ongoing, but the price hike is here nonetheless.
How you can save on your streaming services
With some of the biggest streaming platforms raising rates, you may want to check out other options. For tips on how to save money while making sure you get to watch some of the must-see releases, check out our round-up of how to save on streaming services and find streaming deals.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
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