Netflix remains one of the dominant video streaming sites around the world, even with increasing competitors such as Amazon Prime, Disney Plus, and HBO Max. With the increase in multimedia consumption during the COVID-19 pandemic, Netflix’s subscriber growth slowed down, but rebound with the help of the global phenomenon ‘Squid Game.’ The video streaming site is now hiking its pricing plans.
As of January 15th, new Netflix USA subscribers will have to pay $9.99 for the basic plan, an increase from $8.99. Similarly, users will have to pay $15.49 for HD from $13.99, and the top-tier 4K plan will now cost $19.99, from $17.99.
Existing Netflix subscribers will also experience a rise in prices in the coming weeks. A shift in Netflix prices across the globe will also take place at the same rate, as Canadian prices have also been increased, with the standard plan now costing CAD 16.49 from CAD 14.99.
A Netflix spokesperson in a comment to Reuters stated,
We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members. We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.
Evercore ISI analyst Mark Mahaney stated that over the years, despite the increase in costs, Netflix has increased the number of its customers, which shows that members have been willing to accept higher costs. Mahaney further added, “This is evidence that Netflix has pricing power.”
Over time, Netflix has regularly increased its prices. In 2014, the basic plan only cost $7.99 and reached $8.99 in 2019. While, the standard HD plan launched in 2011 cost $7.99, then $8.99 in 2019, $9.99 in 2015, and $13.99 in 2020. The 4K plan was $11.99 in 2013 and eventually cost $17.99 in 2020.