Netflix has revealed that it will be raising the price of all of its plans in the US and Canada. The basic plan, which allows for only one non-HD stream, is increasing from $8.99 to $9.99. The standard plan, which allows for 2 simultaneous HD streams, is increasing from $13.99 to $15.49. The premium plan, which allows 4 simultaneous 4K streams, is increasing from $17.99 to $19.99. Here’s a look at the history of Netflix price increases and where the trend says prices will be in the coming years.
The last time Netflix increased the basic plan cost was in January 2019, when it went from $7.99 to $8.99. That trend indicates that the next increase would be to $10.99 in 2024, but I wouldn’t be surprised if Netflix keeps the $9.99 price for even longer to retain the ability to advertise the service at less than $10.
The last time the standard and premium plans increased was October of 2020 when the standard plan jumped up by $1.50 and the premium plan increased by $2. If the standard and premium plans increase again in about a year, they will likely move up to $16.99 and $21.99, respectively. However, if Netflix waits until 2024, which seems more likely, you can probably expect the standard plan to cost $17.99 and the premium plan to cost $22.99.
This is why I haven’t subscribed in a couple of years. I refuse to help pay for all that extravagant, original content they spend billions on.
Long time Netflix subscriber and am currently partially subsidizing my premium plan via TMO, but I think at $19.99, that is probably the end of the road for me once the next inevitable price increase occurs. I have always drawn a $20 line in the sand for Netflix, especially in recent years as their catalogue of content has shrank considerably. I realize that much of the now lost content is due to the content creators finally getting into the streaming game, but that still doesn’t change my current ROI outlook on Netflix. At this point, I can’t help but feel as though I am subscribing solely for Netflix’s original content; it’s great programming, but I don’t feel as though it is worth more than $20 per month at this point.
I feel the same as many others. $20 per month is as high as I want to go. Assuming a price increase next year at this time, it will be the end of the road for me. Netflix claims they spent $19 Billion last year on original content plus the rights to older content. This year they claim it will be something like $22 Billion.
The real problem I have is the pricing structure for their plans. They are very clever: The $15 2 screen plan is “Basic HD” which is mostly 720p.
The $20 4 screen plan is “Ultra HD”, their version of 4k so you know you’re getting at least 1080p. For me, it’s not about the number of screens, it’s the video quality. Netflix knows this and is taking advantage. Until their subscribers and their stock start dropping, nothing will change, we have no leverage. They don’t even allow price breaks for paying a full year in advance.
FYI: Existing subscribers will stay at the current price point for a few months, for new subscribers it’s immediate.
Netflix Stock tumbling. Down 20% in today’s trading. In a “sane world” they would reverse their foolish decision to increase subscription costs.
Or at least freeze them for existing subscribers for 1 year to stop the bleeding. But this isn’t a “sane world”, I suspect they will forge ahead with the increase AND give their CEO a 200 Million Dollar bonus as a “reward” for the “fine job their doing”!!!
The reason for the increase was because they knew the stockholder report was imminent and going to show a measurably slowed increase in subscribers, and that this was clearly due to increased competition. The rate increase was to show stockholders that Netflix could maintain its current revenue and profitability with the current reduced rate of new subscribers.
The decision does look dubious on first glance to be sure, but note that their problem is reduced rate of new subscribers, not a loss of current subscribers. This detail is significant given that, as Elias said, Netflix has regularly, and significantly increased it rates for the better part of a decade now.
So far this hasn’t resulted in an actual loss of subscribers (concept proven multiple times) and now, even with new competition, they continue to get new subscribers, albeit at a slower rate of growth than before HBO and Disney entered the market, but really, that was certainly expected.
We make not like the lesson Netflix has learned over the past eight years, I don’t, but as of this quarter, and probably the two and three, its paying off for them.
I agree with you, but to the average subscriber none of this matters. For every dollar increase it’s a dollar less in their pockets. This will be the year to keep an eye on Netflix and I don’t mean their stock. Reed Hastings has repeatedly stated the increased subscription revenue will go directly to “Providing Competitive Content”. We Shall See. Netflix makes way too many new shows (One of their many business model problems). Many shows are, arguably, terrible. The number one subscriber complaint is Netflix’s increasingly terrible habit of cancelling decent shows after 1 or 2 seasons. Rarely is there a third.
There is another “technical” subscriber turnover factor that I believe Netflix completely overlooks. The ease of cancelling one’s subscription. Many customers of traditional cable companies won’t cancel their accounts simply because of the hassle. You have to return physical equipment, find a new provider, schedule an install, possibly rewire your home. So, many keep their service longer than they should until they can’t stand it anymore (I know I did). With Netflix, a few clicks of the mouse and 2 minutes time and I can dump them like an ex-girlfriend. This is where an Annual Plan (with appropriate cost savings) would be huge in stabilizing their erratic subscriber base. I know it may never happen, but hopefully it will be considered in the future.
You’re still going to need broadband internet from the cable company even if you switch to streaming. There is often little to no cost increase to bundle cable tv and phone service with broadband internet. That’s why people don’t cancel cable service.
It’s true that in some locations, adding basic cable TV to cable internet doesn’t cost very much ($10-15). In some locations though, adding even basic cable increases the bill by $40/month. On top of that, most who get cable don’t just get “basic”, they add on things like ESPN or HBO since much of what is on basic is junk making the total bill rather expensive.
There is no one approach that is perfect for everyone. Each has to evaluate their data and entertainment content needs, see what is available in their market, and make the best choices they can.
Agree…a discounted Annual Plan would probably be in their best interest by locking in the full year revenue in 1 transaction and everybody loves a discount.
My TV upscales all content to 4K, and honestly, I’m not seeing a huge difference with native 1080P or 4K content, so they will never get me to pay more for this “feature”…plus other providers offer higher resolution content in their standard packages and Netflix will need to step up their game to remain competitive
I remember when $6/month included both streaming and DVDs in the mail (3 out at a time).
We’ve planning on changing to the lowest tier as we don’t often watch on multiple TVs simultaneously. If it goes up too fast in price, we’ll drop it.
Keep increasing price, yet the video bitrate is lame. Most movies looks ugly in dark scenes because this i thing.
I canceled several months ago. What I don’t like about what not just netflix is doing, but is a trend I guess, the modern day soap opera shows, all the shows where there is no ending, they just go on and on.
The only reason I keep Netflix is because almost all of it is paid for through our T-Mobile family plan. Otherwise I would only subscribe for a month or two, watch the things I’m interested in and cancel. The only service that I haven’t churned in and out of is Prime Video, but that’s only because it’s not a standalone / a la carte service.
Im a Netflix OG, going back to 2000 or 2001. And at some point Im gonna have to cancel because the cost is getting ridiculous.
90% of the stuff they have, I have no interest in. I liked Archive 81 but that was one of the few exceptions. What was cool about Netflix from the start is you had a lot of good choices for a reasonable price. That’s changed quite a bit.
TV in general is just too expensive. I cut cable because my bill was outrageous, but now Ive got subscription bills that probably will be approaching $80 a month between me and my wife.
I can’t justify spending that much on entertainment.