The streaming service had previously raised prices in early 2019.
Netflix is increasing the prices of its standard and premium plans.
Netflix’s HD standard subscription price has increased from $12.99 per month to $13.99 per month, while its 4K premium subscription price has increased from $15.99 to $17.99, the company announced on Thursday. The basic price of streaming services is US$8.99 (excluding HD streaming) and is not affected by the changes.
The last price increase for streaming services was in January 2019.
The price change takes effect for new subscribers on Thursday. Current Netflix customers will receive notifications via email and will also receive notifications within 30 days of the app’s price increase. The time will be based on the billing cycle of a particular subscriber and will be rolled out in the next two months.
A Netflix spokesperson said in a statement: “We understand that people have more entertainment options than ever before, and we are committed to providing our members with a better experience.”
Wall Street was very kind to the news. Within hours of news of price increases, Netflix’s stock price rose by 5%. The price change was announced a few days after Netflix announced its third-quarter earnings, and the company almost missed its forecast for new subscribers. Setting aside the mixed results in the third quarter, since the pandemic began to disrupt the entertainment industry, Netflix has performed better than many streaming competitors, and the streaming service gained a large number of subscribers early this year.
Time will tell how the price increase of streaming services will affect its subscriber base. The streaming service attributed its 2019 price increase to the slowdown in membership growth in the U.S. third-quarter earnings report for 2019.
Netflix’s standard subscription fee is higher than that of most competing streaming services on the market. It is worth noting that WarnerMedia’s HBO Max, which was launched in May, costs $14.99 per month and is plagued by slow consumer adoption.