Netflix announced today that its prices will be rising on all plans in the US and Canada marking another price increase in a long line of increases that started in 2014. What is perhaps most interesting is the timing of this move.
At a time when Americans are seeing major price increases on basic necessities caused by inflation brought on by an un-measured approach to economic stimulation, Netflix, one of the most popular streaming services seems to be piling on and making it hurt even more.
“These prices apply to new members and will gradually take effect for all current members”, Netflix explained in post. “Current members will receive an email notification 30 days before their price changes, unless they change their plan.”
Basic Standard Premium Monthly cost* (United States Dollar) $9.99 $15.49 $19.99 Number of screens you can watch on at the same time 1 2 4 Number of phones or tablets you can have downloads on 1 2 4 Unlimited movies, TV shows and mobile games ✓ ✓ ✓ Watch on your laptop, TV, phone and tablet ✓ ✓ ✓ HD available ✓ ✓ Ultra HD available ✓
Although the per month increases seem to be small, the best way to approach subscription services is to look at them with a per month lens. The Basic Netflix plan currently costs $8.99 which equals $107.88 per year but now will cost $119.88, a difference of 12 per year. The Standard Netflix plan is currently $13.99 which is equal to $167.88, but now will cost $185.88, a difference of $18 per year. The Premium Netflix plan currently costs $17.99 which is equal to $215.88 per year, but now will cost $239.88, a difference of $24 per year.
Historical Netflix Price Hikes
|Price||Jan 2022||Oct 2020||Jan 2019||Oct 2017||Oct 2015||Apr 2014||Apr 2013||2011|
|Premium (4K, 4 screens)||$19.99||$17.99||$15.99||$13.99||$11.99||$11.99||$11.99||x|
|Standard (HD, 2 screens)||$15.49||$13.99||$12.99||$10.99||$9.99||$8.99||$7.99||$7.99|
|Basic (No HD, 1 screen)||$9.99||$8.99||$8.99||$7.99||$7.99||$7.99||x||x|
Inflation aside, Netflix is riding a high of subscribers at a time of increasingly significant competition from HBO Max, Prime Video, Apple TV+, Disney+, Paramount+, Peacock and so on. Netflix has to spend big to keep up and are likely looking to pay for that increased spending, but at some point, Netflix will cross a tipping point where customers will no longer find value in the service at the price Netflix wants to charge. When that happens, the momentum will no longer be on Netflix’s side and could see customers choose other services.