Netflix is once again raising its monthly subscription prices, affecting customers in the US, UK, and France. The cost of Netflix’s lowest tier ad-free plan, exclusive to existing members, will increase from $9.99 per month to $11.99, while the premium plan, currently priced at $19.99, will jump to $22.99.
Meanwhile, the $6.99 subscription, including ads, and the $15.49 ad-free standard plan will remain unchanged. Netflix’s decision to increase prices comes on the heels of its most significant quarter of subscriber growth since 2020, partly attributed to its efforts to curb password-sharing. The company exceeded analysts’ earnings forecasts, resulting in a 12 percent surge in shares after Wednesday’s market close.
This move to boost prices, even as the subscriber base continues to expand, underscores Netflix’s commitment to enhancing profitability. Industry experts, like Mark Schilsky from Bernstein Research, had already anticipated that streaming platforms, including Netflix, would leverage their “considerable untapped pricing power” back in August.
Notably, this price hike is Netflix’s first since January 2022, when it raised the standard plan from $14 to $15.49 and the premium plan from $18 to $19.99.
Despite ongoing challenges like writers’ and actors’ strikes, Netflix’s own original content continues to flourish. Interestingly, the legal drama “Suits” dominated the latest quarter, a full decade after its initial airing on USA Network.