Netflix Subscribers Beware: Prices Going Up
Netflix has once again surprised its fans with a double blow. Firstly, the streaming giant has taken action against password sharing on its platform, and secondly, it has raised the prices of its subscription plans. Previously, Netflix disabled password sharing, which actually resulted in a significant increase in the number of subscribers. According to reports, this change led to a surge of approximately 9 million new subscribers in the third quarter. However, the recent price hike will likely come as an unpleasant surprise to Netflix users, as the company has been frequently altering its policies and prices. To find out the new subscription prices, click here.
New Netflix subscription prices in the US
According to a Reuters report, Netflix banned sharing the password outside of households on the condition that more than 100 million viewers use its service without a subscription. After seeing this information, Netflix is trying to raise its subscription prices worldwide by getting more people to pay for their subscriptions. Therefore, for this reason, the most popular streaming platform has now increased its prices. This decision upsets customers, but Netflix wants to remain profitable and competitive.
According to Netflix, the new plans decided offer a basic package for $11.99 per month, and its Premium plan is now $22.99 per month. The ad-supported package and the standard level remain the same. Reuters quoted Insider Intelligence analyst Ross Benes as saying, “With these tactics, Netflix is likely to double its ad-supported viewership next year.” Based on Visible Alpha estimates, the ad-supported plan is expected to generate $188.1 million in revenue in the third quarter. in the quarter ended in September.
The Verge reported that Netflix previously removed its basic plans in the US, UK and Italy, which saw a growing number of viewers on Netflix’s commercials and standard plans. Now the company plans to do the same in Germany, Spain, Japan, Mexico, Australia and Brazil in the coming weeks. In addition, Netflix may also introduce new features to its ad-supported plans.
This may come as a shock to Netflix subscribers, but it is expected to lead to a spike in revenue for the company and give it a competitive edge over other streaming companies such as Walt Disney.
