Netflix corporate offices in Los Angeles. Mario Tama/Getty Images Netflix is hiking subscription prices across all its plans in its first major price increase in more than a year.
The plans were disclosed on Netflix’s help page Thursday.
The ad-supported tier will rise by $1 per month to $8.99, with the standard plan rising by $2 per month to $19.99 and the premium plan also rising by $2 per month to $26.99 pr month. The company also raised the cost of its “extra member” fee by $1, to $6.99 for ad-supported plans and $9.99 for ad-free plans.
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Netflix last raised prices early last year, with similar increases. Of course, the platform has been significantly ramping up its content, not only in scripted entertainment, but in live events and sports, not to mention other areas like video podcasts and games. The company says it will spend more than $20 billion in its entertainment offering this year.
Netflix executives have long said that they raise prices when they feel they are delivering enough value to justify them. The company has by far the lowest churn in the industry, underscoring its leadership in the space.
But it is also, frankly, something of a bellwether for the entire streaming industry, with other services often following in its footsteps, despite the risk of higher churn.
The move by Netflix also comes just weeks after it abandoned its pursuit of Warner Bros., opting not to match a higher bid from Paramount Skydance. That deal would have been transformative for the company, but in its stead it will instead pour more cash into its own business, and in its capital return program.
We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value,” co-CEOs Ted Sarandos and Greg Peters said when announcing their Warners decision.
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