Netflix is raising the price of its subscriptions again, almost a year after the previous increase.
Netflix logo // Source: David Balev – Unsplash
Since its launch, Netflix’s SVOD service has regularly increased the price of its subscription to accompany inflation, but also the growth of the brand. It is always producing more content exclusive to its platform, such as the recent film Don’t Look Up, while increasing the revenue generated for each subscriber.
The firm announced this Friday a new increase in the prices of its subscriptions in the United States. Here is the new price list and the consequences for France.
What are the new prices in the United States?
Netflix offers three subscription levels depending on the number of simultaneous screens and the definition of the video stream. Here is the new monthly price list for subscriptions.
- Basic (1 screen): $9.99 (+$1)
- Standard (HD, 2 screens): $15.49 (+$1.5)
- Premium (4K, 4 screens): $19.99 (+$2)
There are several interesting indicators to note with this increase. First, the premium plan reaches for the first time the symbolic bar of 20 dollars per month. With a next increase, Netflix would exceed this psychological level and customers would move away more concretely from this myth maintained of “the Netflix subscription at 10 dollars per month”.
We can also note that the “Basic” package reaches the bar of 10 dollars per month, which for several years was the price of the standard subscription and the price put forward in discussions around Netflix. With this amount, we can no longer afford an HD stream.
Netflix is fully aware that this price increase is not timely. An announcement on Friday is designed to catch up on the editorials that wrap up the weekend and ensure that as little intention as possible is placed on this rise.
A year ago, almost to the day, Microsoft used the same method by announcing an increase in the price of Xbox Live Gold on a Friday. Faced with the dissatisfaction of the players, the firm had to change its mind on Saturday and announce the cancellation of the price increase in the midst of a pandemic.
Is the price increasing in France?
No, the price increase announced by Netflix only affects the United States, for the moment. Indeed, Netflix follows a fairly regular rate of increase in its subscriptions, so that it becomes possible to predict when the firm could raise its prices.
Netflix announced a price increase in the United States in October 2020, a little over a year ago, without affecting France. It took until August 2021 for Netflix to announce a new price list in France, with implementation in October 2021 for former subscribers.
With this kind of lag, we can therefore hope not to experience a price increase before the start of 2023.
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