Netflix is raising the price of its streaming video service. Again.
In a letter to shareholders released as part of its third quarter financial report, Netflix executives said the price of its now-discontinued “Basic” plan will increase to $12 per month, while the cost of its fully-loaded “Premium” plan will go up to $23 per month.
The new prices take effect today. Netflix stopped offering its Basic plan in July, meaning the change in price for that tier of service will only affect customers who are “grandfathered” in to that plan.
The price of its ad-supported plan, called “Netflix with Ads,” will remain unchanged at $7 per month, Netflix said, while its “Standard” plan will also hold steady at $15.50 per month.
Executives said the new pricing structure was intended to help the company remain “extremely competitive with other streamers,” though it did not call out any by name. It said the starting price for its Netflix with Ads tier was “much less than the average price of a single movie ticket.”
Prices are also going up for Netflix subscribers in the United Kingdom and France, with comparable adjustments based on a user’s plan. As in the United States, the cost of Netflix with Ads and the Standard plan will remain unchanged for British and French subscribers, but the price for Basic and Premium will increase by a few British pounds or Euros, depending on the country.
The new prices announced today are:
Netflix (United States)
- Netflix with Ads: $7 per month
- Basic: $12 per month (discontinued)
- Standard: $15.50 per month
- Premium: $23 per month
Netflix (United Kingdom)
- Netflix with Ads: £5 per month
- Basic: £8 per month
- Standard: £11 per month
- Premium: £18 per month
Netflix (France)
- Netflix with Ads: €6 per month
- Basic: €11 per month
- Standard: €13.50 per month
- Premium: €20 per month
The price hikes were announced the same day Netflix revealed it brought in $8.54 billion in revenue from nearly 247.2 million global paying subscribers.
The number of customers willing to pay for Netflix increased in all regions, even as Netflix implemented a broader crackdown on password-sharing and eliminated lower-priced, ad-free plans in places like the United States and Canada.
Sources
Information about Netflix’s new pricing structure was obtained by viewing the company’s Letter to Shareholders, which was published as part of Netflix’s quarterly earnings report on Wednesday. The Desk used information in the letter to produce a list of new prices for Netflix’s various service tiers in three countries. Information about how much revenue Netflix earned during the quarter came from its financial disclosure report filed with the U.S. Securities and Exchange Commission.
