Netflix Increases Grandfathered Basic and Premium Plan

Two of Netflix’s plans have seen price increases as of today. The company announced the rate hikes for its Basic and Premium packages alongside its quarterly financial results. Netflix’s discontinued Basic plan now costs $12 per month for existing subscribers, while the Premium plan goes up from $20 to $23 per month. Netflix has announced that the prices of its ad-supported plan ($7) and its Standard plan ($15.49) will remain unchanged. The business had not increased pricing since before Wednesday’s announcement.

“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. Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket”, Netflix wrote in its earnings report.

The company’s decision to crack down on password sharing looks to have been successful. There has been a dramatic yearly increase of 10 percent, and there are now 247.15 million paying members. For the third quarter, paid net subscriber additions totaled 8.76 million, the highest quarterly total in the past year.

As for Netflix’s ad-supported plan, it appears to be off to the roaring start the company was hoping for, with 30% of all new subscribers in areas where it is offered.

Netflix to Transform Hit Shows into Mobile Games

Netflix is adjusting its approach as it deals with greater competition and falls from its peak-pandemic heights. The streaming service is taking the odd step of entering retail on top of its pricing rises, ad-supported plan, and crackdowns on password sharing.

Netflix isn’t the first company to increase pricing. In the past 12 months, Disney+, Hulu, and Max have all issued price hikes. This isn’t unique to direct competitors, either; Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium, and Apple Music have all increased their monthly fees in the past 12 months.

Check Out: Netflix Set to Raise Prices for Ad-Free Subscriptions.