The changes come as Netflix continues to ramp up its monetisation efforts on the platform.
Consumers in the US, UK and France will see a hike in Netflix’s paid plans.
In the US, the prices for the basic plan — the lowest tier plan without advertising, which is no longer available to new members — will increase from $9.99 to $11.99, while the premium plan, which allows users to watch in Ultra HD on supported devices and download on six supported devices at a time, will increase from $19.99 to $22.99. The plan with ads, at $6.99, and standard plan, at $15.49, will remain the same price.
In the U.K. and France, pricing for the ad and standard plans remain unchanged, while the basic plan is jumping to £7.99 and €10.99 euros, respectively, and standard is increasing to £17.99 and €19.99, respectively.
In its Q3 letter to shareholders, the company said: “While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more.”
Speaking during the third-quarter earnings interview, Netflix co-CEO Greg Peters would not comment on when price increases on the other plans may happen, but said the timing will fit in to the company’s “philosophy” of “occasionally” raising prices to continue delivering better content.
The changes come as Netflix continues to ramp up its monetisation efforts on the platform, which have included its new advertising tier — which saw its membership increase by nearly 70% percent from last quarter and 30% of signups in the countries with the ad tier choosing that tier. The streamer says it has now “taken action” on paid sharing in every region the company operates in and continues to see a low cancel reaction.
“The cancel reaction continues to be low, exceeding our expectations, and borrower households converting into full paying memberships are demonstrating healthy retention. As a result, we’re revenue positive in every region when accounting for additional spinoff accounts and extra members, churn and changes to our plan mix,” the Q3 shareholder letter further reads.
However, in the earnings interview, Peters said the rollout would continue over the next couple of quarters and would likely continue to bring in more subscribers.