Netflix is raising prices on all of its plans in the US today. The company’s standard plan will increase from $14 to $15.50 per month, while the 4K plan will go from $18 to $20 per month. The basic plan, which does not include HD, also rises to $10 per month from $9. Prices are also rising in Canada.
The price increases are effective immediately for new subscribers. For existing subscribers, the changes will be made “gradually,” with Netflix promising to email members 30 days before the price hike takes effect.
Prices for a Netflix subscription have steadily risen in recent years. At the end of 2020, the standard plan went to $14 per month, having previously increased from $11 to $13 in 2019.
The price hikes come during a successful but challenging time for Netflix. The company already has a wealth of subscribers in the US, and adding more is challenging — making price increases an obvious answer to how it can make more money. At the same time, Netflix is now competing with several other serious streaming services for attention, including Disney Plus and HBO Max, and has spent a lot of money on content to keep up.
“We’re updating our pricing so we can continue to offer a wide variety of high-quality entertainment options,” said a Netflix spokesperson. Reuters. “As always, we offer a range of plans so members can choose a price that suits their budget.”