Netflix has just made public plans to raise its subscription fees for a second time since the start of the pandemic, though for now said increase will only affect users based in the United States and Canada.
Prior to this announcement, Netflix's standard plan that lets subscribers stream HD content on two screens at a time went for $13.99. It will now be priced at $15.49 while the Basic option will now start at $9.99 instead of $8.99, and the Premium plan that grants access to 4K content on up to four simultaneous screens jumps from $17.99 to $19.99. Canada will face similar pricing adjustments, and though Basic plans stick to its $9.99 price (CAD), the Standard offering goes from $14.99 to $16.49 and the Premium one from $18.99 to $20.99.
News of these changes was first picked up by Reuters, who contacted a Netflix spokesperson that explained the increase with the following statement: "We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.” The last time Netflix had seen such a change was in October 2020, after a massive boost in subscriber numbers caused by the pandemic. The stock market again reacted well to the news, with the company’s shares seeing green numbers for the day.
Last year Netflix spent a reported $17 billion in content, with the streaming service churning out some very successful new shows like Arcane and Squid Game. Of course, there has also been the usual batch of canceled experiments such as the Cowboy Bebop adaptation. As if that wasn’t enough, Netflix has opened up to gaming too, a new venture that should go along nicely with its growing number of video game-inspired productions.
The new pricing scheme comes on the back of growing concerns around rising costs for all sorts of goods and services, with the United States posting a 7% yearly inflation rate that represents the country's highest number since 1982, which should act as a warning sign for gamers to get more used to $70 games becoming more common. The circumstances have also led to an increase in value and popularity for highly speculative assets that include Pokemon cards, crypto currencies, NFTs, and GameStop's stock.
Fortunately, some of the best shows of 2021 are on Netflix, but this price hike might also act as a market trend for its competitors to also increase their subscriptions. So, watch out for similar announcements from Disney, Hulu, and HBO Max later this year.
Source: Reuters