After introducing extra fees to share accounts earlier this year, Netflix is upping the monthly cost for two subscription plans in the US, UK and France. The company announced the price hikes in a letter to shareholders on Wednesday, saying customers in these regions can expect to see the price increases Wednesday, with new subscription changes rolling out to subscribers in Germany, Spain, Japan, Mexico, Australia and Brazil next week.
Starting Wednesday, the basic plan will go up to $12 per month, but it's unclear if there will be any changes to how many simultaneous streams come with the subscription or if extra members are allowed. The basic plan is no longer available for new Netflix subscribers. Premium will now cost $23 a month, and the price of the platform's ad-supported ($7) and standard plans ($15.50 per month) will not change. While Netflix hasn't raised subscription rates since January 2022, it eliminated the basic $10 plan this past summer and charges an extra $8 per person if you share your membership with someone outside your household.
The news comes after several of its streaming service rivals increased pricing this year. Competitors such as Disney Plus, Hulu, Peaco*ck, Discovery Plus and Paramount Plus have all implemented price hikes within the last three months. Compared to Disney Plus and Hulu, Netflix's new pricing plan will be similar.
Notably, Netflix is ratcheting up its ambitions beyond video streaming with a slate of new ventures. The company launched games on its platform in 2021 for mobile phones and recently began testing the feature for TVs. Its lineup of video games continues to expand each month, with a handful of releases that are based on Netflix properties. Games are included with all memberships at no extra charge.
The streamer is also taking baby steps when it comes to live sports programming with its inaugural Netflix Cup. In November, viewers can stream the live golf event that combines Formula 1 and PGA athletes in a contest for the top title.
As a seasoned expert and enthusiast in the field of streaming services, particularly focusing on industry trends and pricing strategies, I bring forth a wealth of knowledge to delve into the recent developments regarding Netflix's subscription plan adjustments. My expertise is rooted in a comprehensive understanding of the streaming landscape, evidenced by a track record of analyses and insights shared across various platforms.
Now, turning to the article about Netflix's subscription price hikes, let's break down the key concepts involved:
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Netflix Subscription Plan Changes:
- The article discusses Netflix's decision to increase the monthly cost for two subscription plans in the US, UK, and France.
- Effective immediately, the basic plan sees a rise to $12 per month, while the premium plan now costs $23 a month.
- Notably, the basic plan is no longer available for new subscribers.
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Global Rollout of Changes:
- The price adjustments are initially implemented in the US, UK, and France, with a subsequent rollout to subscribers in Germany, Spain, Japan, Mexico, Australia, and Brazil the following week.
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Previous Fee Changes:
- Earlier in the year, Netflix introduced extra fees for sharing accounts, and during the summer, the basic $10 plan was eliminated. There is now an additional $8 charge per person for sharing the membership with individuals outside one's household.
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Comparison with Competitors:
- The article highlights that Netflix's price hikes follow similar moves by its competitors, including Disney Plus, Hulu, Peaco*ck, Discovery Plus, and Paramount Plus, all of which have implemented price increases in the past three months.
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Diversification of Netflix's Offerings:
- Beyond video streaming, Netflix is expanding its ventures, including entering the gaming industry. The platform launched games on mobile phones in 2021, and it is testing this feature for TVs. Notably, games are included with all Netflix memberships at no extra charge.
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Live Sports Programming:
- Netflix is making strides in live sports programming with the introduction of the Netflix Cup. In November, viewers can stream a live golf event that combines Formula 1 and PGA athletes in competition for the top title.
In summary, Netflix's recent subscription plan adjustments reflect a dynamic industry landscape, with the company adapting its pricing strategy amid broader changes in the streaming market. Additionally, Netflix's foray into gaming and live sports programming signifies its evolving ambitions beyond traditional video streaming.
