Netflix is hiking the price of its popular standard plan nationwide to $14 a month — a $1 increase from the previous cost. Its premium packages are also also going up to $18 a month, a $2 increase, according to The Verge. The basic price will stay the same at $9 a month, according to CNET. The company has not raised its prices since early last year.
“We understand people have more entertainment choices than ever, and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said. “We’re updating our prices so that we can continue to offer more variety of TV shows and films — in addition to our great fall lineup. As always we offer a range of plans so that people can pick a price that works best for their budget.”
New Netflix subscribers will be forced to pay the higher monthly fees immediately; however, those who are already Netflix subscribers will not see their prices raised until a few weeks from now, depending on their billing cycle. Prices have already gone up for Canadian subscribers.
Netflix is seeing increased competition in the streaming business with HBO Max and the recent additions of Disney Plus and NBC’s Peacock. Their prices vary from being free for subscribers to $15 a month.
The pandemic boosted Netflix’s bottom line earlier this year, sparking a wave of new subscribers. The company, which is estimated to have around an $18 billion content budget, is also expanding its slate of programming and plans to release even more television shows and films next year.
