Netflix has announced a price increase for its Basic and Premium plans across the United States. The Basic plan, which is no longer available to new members, will now cost $11.99 per month, up from $9.99, while the premium will skyrocket from 19.99 to 22.99, which allow to watch in HD and to connect six devices . In the middle of the strike, Netflix’s revenue was around 8.5 million, an increase of 8 percent year-over-year, and the addition of 5.9 million new subscribers last quarter. According to Hollywood Reporter,” 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”.
According to an interview via Hollywood Reporter, Netflix Co-CEO Greg Peters would not comment on when price increases on the other plans may happen, but said the timing will fit into the company’s “philosophy” of “occasionally” raising prices to continue delivering better content. The price changes were made as Netflix continues to ramp up their efforts as its membership went up by 70%, with 30% of new sign-ups coming from countries with the ad tier.
Netflix is constantly working to improve its streaming technology. Netflix has decided to take action and implement paid sharing function in every region the company operates and a low cancel reaction. Their policy roll out related to password sharing will continued for several quarters and to draw in more subscribers. According to Hollywood Reporter, the shareholder letter recited “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”.