Today, Netflix increased prices for US customers. The Netflix Standard plan is now $14 per month, a $1 increase, and the Premium plan is now $18 per month, a $2 increase.
We first reported that an analyst was predicting a price increase last month, noting that Netflix would make between $500 million to $1 billion more in sales next year by charging $1-2 more across all markets.
The company increased prices so that we can continue to offer more variety of TV shows and films,” a spokesperson told The Verge. “As always we offer a range of plans so that people can pick a price that works best for their budget.”
Netflix has shared plans to invest more in content, along with developing more features to improve the viewing experience for customers. In a letter to shareholders for Q3, Netflix acknowledged its competition, saying that the company will continue to improve in an effort to remain the go to service for great content. During an interview after that letter was posted, COO and chief product officer Greg Peters did not comment on when Netflix would raise prices. Prices were increased in Canada shortly after, followed by the increase in the US today.
The last price hike for Netflix was in January 2019, the first increase in five years. At that time the price of the Standard plan went up from $10.99/month to $12.99/month. The Basic plan increased from $7.99 to $8.99 and the Premium plan went from $13.99 to $15.99.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement at the time of the 2019 increase.